The Iryo train was stopped and unable to restart, because it's safety system did not allow that until the signalling issue was corrected. The AVE was commanded to move again like normal (200 Km/h or more). When the Iryo reported to be stuck, all the trains in the line should have been notified to stop once more, or go at line-of-sight speeds (40 Km/h). Both options are bad for delays. Current news is that five minutes after the Iryo call, the AVE rammed its back at 160-200 Km/h.
CEO of Iryo company complained 3 weeks ago about LZB being problematic, their trains taking a long time to recover connection. Safe but old, he said. It should have been replaced by ERTMS by 2024-2026.
That would have meant that the dispatcher would have been aware that they already ordered a collision before. If a train stops no accident will happen, unless it could have happened regardless. Yes, such a decision would have prevented the accident or lessened it's impact, but the absence of it has not caused it. The error was already done before.