What should the students and teacher do?

Last tuesday alot of students walked out of the course because they were handed back the exam and got failing grades. Only three person ped the exam and it was barely. When the professor of our physical chemistry cl (first semester professor) told us that she felt we did not study one girl got upset and blasted her in the cl by telling her teaching style is awful and she does not know what she is doing and told her most students were upset because most of her examquestions (like usual but worse this time) do not reflect anything they did in cl, read, or did for homework. The same student also blasted her for giving a retest to the cl after alot of people did not do well on the first exam but for not completely grading the original test which is putting stress on her and other students because they may have did better on the original exam but dont have an idea of how they stand in the cl because they have not gotten it back. Then students started walking out of the class and the professor seemed sad and wanted to cry especially when I who was one of her favorite students did the same because I was angry I got a D. At the moment I did not care because like most students our grades are important to other future (getting into grad school, med, or seeking employment, scholarships) but now I feel a little bad because the professor is a nice lady and I found her attractive but then again I do honestly agree with most of the other students.