Out or continue at bat?

[scrounge]

Out, of course. The definition of a bunt:

2-8-1: A bunt is a fair ball in which the batter does not swing to hit the ball, but holds the bat in the path of the ball to tap it slowly to the infield. If an attempt to bunt is a foul ball, it is treated the same as any other foul ball, except that if the attempt is by a batter who has two strikes, such batter is out as in 7-4-1e.

By holding the bat motionless, was he holding the bat in the path of the ball? That's exactly what he did - it couldn't have hit the bat if it wasn't in the path of the ball. Now if he tried to pull it back or give SOME indication that he was taking evasive action? Different story. But if he's just going to stand there like a goof? Learn to bunt better, enjoy your short walk back to the dugout.