Lol, that's too funny, it would make a cute ad for Bullysticks, "I'll do anything to protect my Bullystick!" You know, females mark too, and I think she was marking her property, dogs don't think of pee like humans do, and remember pee is relatively sterile so unless she has a bladder infection, you need not worry about germs. I think, perhaps, because the stick was new, she reacted this way, was it a different brand? The only thing I'm not sure about is giving her a "time out" in her bed, if by bed you mean kennel, I've read that you should never use the kennel as punishment, it should always be a safe haven. If, however, you meant bed, than there is nothing wrong with that. How you get her to stay, I don't know.
When Joey gets protective of his bullystick, I just put it away for a while. Usually it's because of another dog, however Joey treats human children as if they were dogs, he doesn't seem to think of them as dominant over him, so if these were younger children, under 12, that might have been part of the problem. As soon as the coast is clear, and she won't be interrupted I would give her stick back, or maybe put her in a kennel with her stick, that way, she would feel protected. Have fun at the party!