Ball out of play
 

HS jv game, I am coaching 3rd base.

Bases loaded, 1 out. Pitcher pitches a ball that tips the catcher's glove, bounces off her mask, and sails over the backstop into the crowd. All runners move up one base. Suddenly, PU sends R2 back to 2nd, and R3 back to first, but allows R1 on 3rd to score. PU says that because the ball was pitched, only the runner closest to home scores, everybody else stays put. I said that I didn't think that was right, but I couldn't cite the rule, so I didn't argue. We had a sizeable lead at the time, and the batter was hit by the next pitch anyway, so the runners moved up and we went on with the game.

Was the umpire's call correct?

One base for all runners; 1st base only if ball four for the batter. Fed 8-4-3c.