It won't reset the password for the account that performs the password reset, as that would log you out. You have to change your own password manually.
It didn't work, we just tested. Did you reset the remainders of from 258000 exactly?
ritterdude (userid 270789) just logged in with old credentials, this worked fine.
This is the only reset I've instigated, so it'll be the second reset in total. It was required, as you said people had not had their passwords reset as intended.
Calm down, there is no problem here unless even after this 2nd reset some people still don't have new passwords.