Floor killed my hand after dealer error

Was this ruling correct?

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So I was playing in a multi-day tournament at the Borgata in Atlantic City, NJ, 2 weeks ago now. This was specifically an invitation only recreational league event. I won a satellite for my seat into the event valued at $400. We are playing 9-handed and I have about 15 big blinds in my stack around level 7. I had been card dead for a few levels now and was slowly being blinded out of the tournament after doing okay early on. This occurred about 15 minutes before the break and end of late registration (though I had no plans to rebuy this event if I had busted).

I am dealt :as4::qs4: in the big blind (2 seat) and 5 players limp in the pot ahead of me. I am thinking my only move at this stack depth is all in, so here we go. 4 players basically instafold, though one may have acted out of turn (relevant in a second). Dealer then proceeded to ship me the pot, and take the cards from the muck and begin to shuffle the deck (taking the cards and beginning to wash them). About 15-30 seconds after this happens, another player at the table noticed that someone in middle position (7 seat) still has cards and was apparently tanking this whole time! So he begins to complain, then dealer calls floor, I say to the guy "are you actually calling or not?" and he says yes.

Floor comes over and everyone is trying to explain the situation to him, but he really doesn't listen... The dealer tries to explain but he does not speak good English.

Floor's final ruling is that since the mucked cards are now in the deck and a clean flop cannot be dealt, it is a "fouled deck" and everyone in the pot is returned their blinds but the button moved so I did not have to pay the BB and ante again.

Was this the correct ruling? Or should just his hand be dead for taking too long to say anything. I feel like when he saw the pot being shipped to me that was enough notice for him to be given that he had to contest the hand.
 
YLAN

YLAN

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Unfortunately it is what it is. Its a dealer error & there is no way to recreate the pot as dealer is already washing the cards. Why didn't you stop the dealer from shipping you the pot & pointed out that there is still another player in the tank? Sometimes its incumbent on the players to pay attention on the the game since dealers are human and could commit mistakes just as in this case. If the dealer have not completely mucked the deck & community cards can still be reasonably determined then the pot would continue otherwise it would be "fouled".
 
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