Oh my word. What a ghastly thing to happen to your hard work.
Seems to me no reason to be mad at yourself? You tried your best to fix something that was not fixable, alas
.
If your friend needs a quilt and the good one is suitable, I would gift it to your friend. If not suited to your friend, then WW. And whoever doesn't get the good quilt can wait until you have time and inclination to make another that is just right.
Perhaps the non-bleeding parts of the other could be rebound and gifted to a local animal shelter?