I have no idea why the Ref said what he said. We have no NCAA rule that says the receiver has to reestablish his position after being blocked OOB.
All he has to do is come back in or in this case he jumped from the OOB spot and completed a catch when he came down in bounds.
I'm not worried about him taking four steps either. When you have a receiver streaking down the field, it takes a few steps to regain ones balance to be able to get yourself back on the field. Jumping from the OOB area does not change the fact that he is still eligible to touch the ball as he was legally blocked out.
I say they got it right.
Not clear to me why the play was originally ruled on the field to be incomplete. Even if he did go out on his own, the pass would still be complete by definition, but there would be a flag down and a 0 yardage penalty with the down counted at the previous spot as the receiver was first to touch the ball.
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