The Lighting Round
by Joe McCrea (Logain)
1 = O
2 = T
3 = R
4 = M
5 = I
6 = A
7 = U
8 = N
Four letters are unique based on their layout: R, A, O, and T, solving for LEDs 1, 2, 3, and 6 respectively.
Based on the number of diagonals and orientation, LED # 5 must be I.
This leaves the last three letters, LEDs 4, 7, and 8.
LED 7 can be C or U.
LEDs 4 and 8 can each be M, N, or W.
Since no word can be formed with a combination using W, two Ms or two Ns, LEDs 4 & 8 must be one M and one N, so the final word must be an anagram of RAOTIMNC or RAOTIMNU.
Since R cannot be first letter based on the fallen label, the only anagram of the first set, the word ROMANTIC cannot be the answer. The only other option is MINOTAUR.