Dodgers v. Reds - Dead ball missed

[travlinmatt]

Tonight's game between the Reds and Dodgers had an interesting play. Top 9, Reds lead 4-1. Dodgers at bat, bases loaded, 2 outs, count is 2-2. B1 swings at the pitch. The pitched ball strikes him in the shin and ricochets to the backstop. Third strike, not caught with 2 outs, the runners all advance and the umpires allow this. Bases are again loaded, now the score is 4-2. What am I missing? A ball that strikes a batter, even if it is a strike, is immediately dead. In the case of strike 3 not caught, the batter is out and cannot advance to first as the ball is dead. Am I correct in stating that the wrong ruling was made on the field? Thanks all.