This comes up in every game. I figured I would try to make some examples and maybe the right people can give the answer. 
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My feeling (not massively useful perhaps!) is that after everything has been positioned there should be equal amounts sticking out on each side.
Why? Well the reforming unit is making room for the other one to join and this makes intuitive sense. Remember though, I just said this feels right, so not much help!
However, one further thing that backs this interpretation is that in the rules for reform it is mentioned that, when combined with another unit’s charge, “follow the same rules for multiple charges”. It is noted that the unit cannot become unengaged with any units it was engaged with previously, so the only change from it being a basic multi-charge in terms of outcome is that they can’t slide out of contact with any currently engaged units.
Definitely could use a clarification.
I think the answer in the case of a reform + charge is (2)
with the two blue units sharing frontage of the charge target as much as possible, without the reformer breaking contact with either of its existing combatants. Obviously without a corner charge going on.
But note that in the case of a halt + charge, and if the charger has room to maneuver, then (1)
may be a possible outcome too. Say if the blue horde wants to avoid being wrapped around by the red troop (or remain in scoring position or whatever).
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I agree it would be a good look, as long as everyone are still engaged with who they’re supposed to, the ideal could be to center it all up again. not that the rules necessarily say that currently though.