Hi
Its not clear at what has happened. Normally it is :
First attempt uncapped.
Second attempt capped
Third attempt retake [attend lectures] or resit the following year.
Are you suggesting they are withdrawing you after only one resit?
They always have discretion. but its unusual. perhaps you did really poorly?
Presumably you have already put the appeal in and you had your reasons so you dont need advising on that.
I am uneasy when you talk about having studies terminated and dont know if that is what they have intended or just your words?
They would normally offer resit or retake next year, but they have the discretion not to if you fell way below and your performance on the course has been poor. It isnt clear what has happened.
If they are deciding that now, then they have discretion. They could make you do the module again, if you scored 35 or greater they could give you a condoned and progress or they could let you just resit the exam only next year and withdraw you from uni till then.
The point is its up to them what they do.
https://www.liverpool.ac.uk/media/livacuk/tqsd/code-of-practice-on-assessment/appendix_B_2014-15_cop_assess.pdfI have no idea what course you are doing, but as long as you havent enrolled, then the other option to you is withdraw yourself and do a fresh degree elsewhere either through clearing now or apply through ucas and take a gap for sept 2019 entry. This will be the only time you have that choice to start again assuming you havent used any other student finance.
Post back when you know the outcome of your appeal. Other than withdrawing yourself and not your appeal is in then theres nothing to be done until they decide. I would question whether it was worth carrying on and that starting fresh might be better, especially if your grades were poor.