You are correct that the error would have had to be noticed prior to the ball coming live after H1's made basket.
If it had been discovered after the made basket, the basket would still count, H1 would attempt the second free throw with the lane cleared, and then V would be given the ball for a throw-in on the end-line. They would be able to run the endline.
There is no way to cancel the basket unless the error was realized prior to the made basket.
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