SnG rule question

[Chah Ngo]

Just finished a SnG at Royal Vegas and ran across a strange situation. Four left and three places pay. I am dealt queens and have an overpair to a two suit flop. Tiny stack player calls a bet from my left all in with his last 70 chips. I have about 500 left and push. The bettor hits his flush on the river, so me and tiny stack are out. However, the third place money is split between us! Isn't the ruling typically that the larger stack at the beginning of the hand would get third place? Anybody ever seen this before?
Thanks.