This is extremely disappointing. It's hard to say who screwed up here since we don't know any of the facts. It's entirely possible that the whole deal was formalized too late and it was just impossible to get the paperwork in on time. Obviously "something" wasn't turned in by the deadline.
If absolutely no paperwork had been turned in by the deadline, I can see why FIFA made this decision. What I will say is that if the "initiating" paperwork was turned in on time and the deal had been completely agreed to by 11pm, FIFA really should allow it to go through. They're really screwing both clubs and the player by refusing.
Personally, I think Everton had initiated the process on time but either us or Brugge failed to turn in everything required. Everyone involved seemed rather confident it would go through. If that was the case, I'm really pissed at FIFA. I just hope it doesn't screw us over too much. I'd love to see Vadis join in January.