Defense runs off the field

We were doing an ASA Rec all-star tournament last weekend. I have never had this happen before. We were working a 10u game, runners first and third one out. Batter hits a line shot over the SS head. Outfielder makes a throw to 2nd base. I have a bang-bang out. Ball is returned to the pitcher she drops the ball and defense runs off the field. I look at my partner thinking “did I miss an out?” he looked back at me shrugged his shoulders so we both stand there. Runner comes home on the hit and batter is standing at the plate looking around trying to figure out what to do when base coach yells “Run” She takes off for 1st and stops. Base coach yells again “RUN” she heads for 2nd when the defense figures out it wasn’t the third out and starts coming back on the field. Runner makes it to 3rd before someone makes it to the ball and picks it up. After the defense is back on the field ready for the next batter the 2nd baseman looks at the SS and said. “Man do I feel stupid.” SS said “Me too.”