Retouch base after foul ball

[onetime1]

Was watching a high school baseball game here in Wisconsin over the weekend. Crazy scenerio occurred to end the game. Score is 2-1 home team in the lead top of the 7th. Bases loaded one out. The batter hits a long foul ball down the right field line. All 3 runners are tearing around the bases when the home plate ump yells "foul" runners return to their bases. After the next pitch which was a ball low the base umpire comes flying in toward the plate and calls 2 of the baserunners out for failing to retouch their respective bases following a foul ball. What a weak ending to this exciting game. Is this correct? Is there a rule that supports doing this?