Correct call. Before reaching first, he must enter dead ball territory. Even if he bunts. OBR created a recent exception (6.09(b) comment) for a dropped third strike, in which the batter not running to first is out when he leaves the 13-foot-radius circle surrounding home plate.
OBR 7.08(a)(2) and FED 8-4-2-p make abandonment ('progressing a reasonable distance to the dugout acting like he is out') by a runner after touching first base a judgment call.
And if the misinformed runner thinks he was the third out and heads for his defensive position, . . .
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