Bought App then iPhone crashed

I bought an app for 9.99 and had it for a week or so before my iPhone 4 decided to crash and go into recovery mode. I hadn't backed up the new purchase by plugging the phone into the computer. With the reset of the phone it is gone and I am not eligible to download it again for free. I feel like this is Apple's fault. Can I do anything?

It is your fault for not transferring it to your computer for a week. You should do this regularly and include this in your regular backup of your computer as well.
However, unlike music, you can redownload apps for free:
http://support.apple.com/kb/HT2519

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