[Kurn, son of Mogh]

Not true. The blinds still have the option to raise, but not the UTG player, since technically he hasn't been raised and can't raise himself. Even in NL, a raise has to be at least double the previous bet. UTG bet 1000 if the next player is all-in for 1499 or less, he hasn't reraised and all UTG can do (if the blinds don't reraise) is call.