No exception for stupid.  He didn't have to make the withdrawal until the closing date, or even 60 days before the closing date so that he could put it back in case the deal fell through.  In the alternative, he had 120 days to get better and close on a new deal. 

"(A) In general The term “qualified first-time homebuyer distribution” means any payment or distribution received by an individual to the extent such payment or distribution is used by the individual before the close of the 120th day after the day on which such payment or distribution is received to pay qualified acquisition costs with respect to a principal residence of a first-time homebuyer who is such individual, the spouse of such individual, or any child, grandchild, or ancestor of such individual or the individual’s spouse."