Hi Kelli,
That is a nail biter to be sure. I had a look wondering if you could change it to an ungraded assignment, however, that results in no submission being possible, which is undesirable for this case.
In slightly more quirky, but still completely possible workarounds territory, the teacher could go through and do an export/import from the grade book (see this link How do I import grades in the New Gradebook? for more details).
In theory, she could give zero for everyone that hasn't submitted which would give everyone a grade and that would ensure they no longer need to be graded.
The benefit of this solution is, the 200 odd notifications go away, but if any of the student's that haven't submitted (and you give zero to) actually do submit, then it will say that there is a new submission to be marked in SpeedGrader, so she won't miss out on giving a mark if needed.
You may also want to advise (if the teacher hasn't already) to go in and exclude the assignment from the final grade you can see the details on how to do that here How do I exclude an assignment from the course's final grades?.
I hope that helps!
Stuart
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