Yes, a speller can restart a word -- as Aryan Sant, speller 157, did when he spelled "vestibule" V-E-S-T-I-B-U-E.
But once you've said a letter, you can't change its placement.
So even though Aryan, an Indiana fourth grader, realized and corrected his mistake, it was too late. He was eliminated.
A vestibule is a passage, hall or chamber between the outer door and the interior of a building.