I think the rejects being grouped together actually helped you and them. When only one or two are placed in a team, they can bring the whole team down. When the rejects are grouped together, and they know they are rejects, they can use it as fuel to prove everybody wrong. But I also think you did an awesome job with them.
With the right motivation a group of misfits can be honed into a very effective unit, but it's incredibly difficult as they often don't work well with others, each have issues different to the next, a problem with authority, discipline, work ethic and so on...My team had all of that and more...But I worked with it rather than against it and slowly each became effective individually and as a team. It was a very difficult time in my career, but was rewarding.
Glad you were able to rise to the occasion and got rewarded for it. It is also really nice that the higher ups noticed it.
The highers noticed for sure...and not just me, but also the individuals in the team some of whom went on to some really cool things.