Man, am I glad I saw this thread. We had a big discussion about this last week at our rules study session, and I just couldn't figure out why this would be correct.
If B has the ball for the throw-in, it's live. If they throw the ball in and time starts and then we discover the error, obviously B is getting the ball back where they had it.
I see absolutely no rules justification to make this case ruling correct...
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