Clock starts too soon

[BayStateRef]

Youth tournament, championship game. 34 seconds to go, Team A hits a free throw to go up by 5 points and coach instructs his players "no foul" and to back up to half court. Team B inbounds by rolling the ball onto the court where a player hovers over the ball, but never touches it. When the ball gets almost to half court, and just as the player touches the ball, my partner blows his whistle because the timer has improperly started the clock. There are now 29 seconds on the clock.

Partner says to restore 34 seconds to the clock and gives the ball back to Team B on the baseline. Team A then decides to pressure the pass and the dribble, so Team B is hurt by the timer's error since it has to use a running clock to get ball to halfcourt (where previously it had a "free pass" to that spot with the clock stopped.)

When a similar play was discussed here three years ago, some argued that play should be resumed with a throw-in at the spot nearest where the ball was touched, with time restored. Others said there was no rule to support that action and we should have a "do over."

One other option: since the officials had definite knowledge that 5 seconds ran off the clock that should not have....using 5-10-1 and 5-10-2, could we let play continue and then at the next dead ball, put 5 seconds back on the clock?

Related question: Should the whistle have sounded at all? The rule tells what to do to correct a timer's mistake, but I don't see where it says to whistle the ball dead because of a timer's mistake.