The final scenario is wrong. This would be the case:
Indiana win + Purdue win = MSU 2nd, MD/WI/PU/IA tie for 3rd >> MD (3-2), IA (2-2), PU (3-3), WI (2-3)
As discussed on other threads, the question becomes how to break the remaining tie between Purdue and Iowa. There are two possibilities:
1) If it reverts to the two-team tiebreaker, Iowa holds the H2H and would be the #4 seed
2) If it continues to the next step of the multi-team tiebreaker (comparative records against teams in descending order), Purdue be the #4:
vs. Indiana: Iowa (0-2), PU (0-1)
vs. MSU: Iowa (2-0), PU (1-0)
vs. MD: Iowa (0-1), PU (1-1)
If, in doing the comparative record tiebreak, we still consider MD/IA/PU/WI to be tied, the group would have to be considered collectively and would not break the tie. It would have to skip down to OSU, where Purdue would still hold the tiebreaker (1-0 against Iowa's 0-1)
So again, the burning question is which of these two options in this scenario is the correct application of the tiebreaker rules.