illegal batting penalty?

[cornchild]

Here's a call I need some help understanding:

Green has the ball on their own 45 yard line, it is 4th and 13 and they are back to punt. Green snaps the ball over the punter's head and the Green punter is hit by Red and the ball continues to bounce. Red tries to grab it and bats it from the 7 yard line into the endzone where Red recovers for a touchdown. A flag is thrown and the officials call "illegal batting". It was my understanding that it was a five yard penalty from the spot of the foul. The officials mark off fifteen yards from Green's line of scrimmage and give Green a first down on Red's 40 yard line. Green went down to score and won the game by a touchdown. I am baffled.