scoring question

[LDUB]

I was wrong before. My answer would have been correct if no one had appealed the batting out of order though.

NFHS rule 7-1-1b

When an improper batter becomes a runner or is put out and the defensive team appeals to the umpire before the first legal or illegal pitch, or, play or attempted play, or prior to an intentional base on balls or before the infielders leave the diamond if a half-inning is ending, the umpire shall declare the proper batter out and return all runners to the base occupied at the time of the pitch.

So R1 at second R2 at first. The improper batter is at bat. He singles, and everyone advances one base. Now the opposing team appeals that he was not the proper batter. The proper batter is called out, but how do you return the runners to their bases they were at at the time of the pitch. R2 can not return to first because the improper batter is standing there. Does the improper batter just disappear from first base?