My app was rejected because my app was not OAuth verified when the merchant reinstall

Could be a problem with your uninstall webhook not processing the uninstall properly, so when they tried to install the app a new time it failed.

I would suggest purging the reviewer’s shop from your database and try it again. However, make sure you clearly understand their feedback and have properly addressed it before resubmitting. If you are unsure, post the test here for people to help.