Deep breaths. Much depends on how the slate was submitted.
See bottom of page 5, top of page 6:
Every candidate is evaluated and their application scored. USNA will identify the fully qualified candidates on the slate. Fully qualified is: medical/DoDMERB or waiver; physical/CFA; scholastic/academic, all the other elements which are evaluated. USNA typically does not tell candidates if they are fully qualified. The first two quals are obvious. That last qual category is behind the green curtain.
If it is true the principal nom was offered Foundation and not an appointment, then it is likely they were not found fully qualified for an offer of appointment. Depending on if the rest of the slate was ranked or unranked, it is likely they will choose a fully qualified candidate to offer an appointment to, which will be charged to the Rep. They can also choose other fully qualified candidates to offer appointments to, and charge those appointments to other nom authorities they manage.
As I understand it, waitlists aren’t run “by the numbers.” People are chosen for a variety of reasons.
What are you waitlisted for? Appointment? NAPS?
The decision by the principal nominee may or may not impact you. Keep an open mind, tend your alternate plan and hope for the best.