Todd, a quick few minutes in the rule book and case manual and I agree with you -- the Ref must be confused as well, allowing the players to line up the wrong way. (I like these boards -- it embeds stuff in my head.)
My only guess at this point is that at an association meeting we talked about the scenario, and maybe it was suggested that if all 10 players were confused, maybe the Ref didn't do his/her job of making sure everything was straight. Thus the provision of 4-5-4 would be applied.
Thanks for the comment.
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