No - they didn’t pull it up. They simply, and correctly, ruled that the starting point was outside the 22.
I get that officiating can be tough and people like to bag them but the players were wrong here. And sometimes, often, the officials let stuff go to let the game flow. People are bitching about nothing. The officials were right, the players took a liberty and it bit them in the arse.
Edit: rather than Crap officiating I think the officials should be applauded. They let something go that was largely not material (although the Reds might argue it contributed to their woes) until it was material and then they made the 100% correct call.