Re: was this handled correctly?
Everyone should keep in mind tho that a "fouled" hand does not directly and absolutely equate to a "dead" hand (a misconception held by the vast majority of un-knowledgable players, dealers, and even floors). A fouled hand MAY be ruled dead.
I see no reason why the floor would summarily rule the hand dead here. If both the player who folded and the player who was still in could clearly identify their cards, the hand was salvageable. But not calling the floor to figure it out is inexcusable.
The responsibility of protecting one's hand does not extend to unreasonable means either. I mean what ARE you supposed to do, put a playover box on top of your hand every time, with a 50 Kg weight on top of it? This seems more like a freak accident than an obviously and blatantly unprotected hand.
al
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