Observation Boys 3A Final in WA

[IUgrad92]

Down under a minute and game was decided at this point. Lakes (team losing) fouls and puts Ranier Beach to the line for 1 and 1. All Ranier players stay back at half court. Two Lakes players assume the 1st spots and a 3rd Lakes player is in 3rd spot and proceeds to the 2nd spot and I saw administering official come into the lane and head towards Lakes player assuming the 2nd spot. The camera panned away to the crowd for a second and came back for the free throw and guess what, that Lakes player that had moved down to the 2nd sport was back up to the 3rd spot.

Am I correct that there is no rule reference that says the Lakes player cannot assume the 2nd position in this particular situation?