The midfielder was handed his marching orders following a clash with Huddersfield Town's Keith Southern.
However, Saunders believes that the Huddersfield midfielder overreacted and with that in mind, Wolves may lodge an appeal to the authorities to avoid losing O'Hara for three matches.
"He didn't throw a punch. Keith Southern ran into the back of him and Jamie pushed him in the shoulder and their player went down as if he'd been shot," said Saunders.
"To lose him for three games at this stage would be harsh so we're considering an appeal."
O'Hara joined Wolves on a permanent basis from Tottenham Hotspur in 2011.