Is there not a third option for (2) along the lines of: did they actually think the gear was down for the landing(*) and then "raised" it (but actually lowered it - continuing previous apparent state of confusion on this) to extend the glide when they realized they had no engines.
(*) thinking it's maybe possible they went around having, belatedly, realized they were too fast and brakes / reversers weren't kicking in, but not actually realizing they had landed gear-up.