This is not a correctable error it falls under a timer's error.
The officials are allowed to adjust the time based on definate knowledge.
So in this case when Ref 1 blew the whistle and saw the clock still running all he/she is allowed to do is put the time that was on the clock when they first looked at it.
If a second or less ran off from the whistle to when the clock stopped, no correction is made because there is 1 second of lag time.
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