This is a start to explaining the stand-down order -
Peggy Noonan writes:
Because the White House could not tolerate the idea of Benghazi as a planned and deliberate terrorist assault, it had to be made into something else. So they said it was a spontaneous street demonstration over an anti-Muhammad YouTube video made by a nutty California con man. After all, that had happened earlier in the day, in Cairo. It sounded plausible. And maybe they believed it at first. Maybe they wanted to believe it. But the message was out: Provocative video plus primitive street Arabs equals sparky explosion. Not our fault. Blame the producer! Who was promptly jailed.
If what happened in Benghazi was not a planned and prolonged terrorist assault, if it was merely a street demonstration gone bad, the administration could not take military action to protect Americans there. You take military action in response to a planned and coordinated attack by armed combatants. You don't if it's an essentially meaningless street demonstration that came and went.
Why couldn't the administration tolerate the idea that Benghazi was a planned terrorist event? Because they didn't want this attack dominating the headline with an election coming. It would open the administration to criticism of its intervention in Libya. President Obama had supported overthrowing Moammar Gadhafi and put U.S. force behind the Libyan rebels. Now Libyans were killing our diplomats. Was our policy wrong? More importantly, the administration's efforts against al Qaeda would suddenly come under scrutiny and questioning. The president, after the killing of Osama bin Laden, had taken to suggesting al Qaeda was over. Al Qaeda was done. But if an al Qaeda offshoot in Libya was killing our diplomats, the age of terrorism was not over.
The Obama White House didn't want any story that might harm, get in the way of or lessen the extent of the president's coming victory. The White House probably anticipated that Mitt Romney would soon attempt to make points with Benghazi. And indeed he did pounce, too quickly, the very next morning, giving a statement that was at once aggressive and forgettable, as was his wont.
And recall how Romney was criticized for "making politics" out of Benghazi.