So the products that do not meet the criteria correctly do not show up BUT you are left with white space?
This might help, though I am not totally sure I understand the issue without seeing the code or the output:
I wonder if there is another container around that. I am not familiar with your theme but in my experience (namely with Out of the Sandbox themes), there is a loop through the products and if the product is to be shown, it includes a "thumbnail" liquid file. It seems to me that you should be skipping the thumbnail altogether if the product is filtered.
|an hour ago|