What's the call??? What's the scoring?

[CecilOne]

First, we don't know which code was in use or whether the tourney had such a rule.
Second, I hope someone reported the spectating "umpire".
Third, at least three replies in this forum had personal rules or personal interpretations. If there was such a rule in force, the call was good. If not, a learning experience.
Fourth, if the dead ball call was made, it was made, nothing can happen, the "out" at 2nd did not occur, the runner returns to 1st and the BR is out. That would leave two outs.
Fifth, if there was not such a rule in force and the umpires then realize the mistake, they have to nullfy the effect and place the BR on 1st forcing all the other runners to the next base. That would leave one out.
Sixth, per Steve: "Keeping score is not my job, it's their job."