Ethics Question

[Riverman]

So I am sitting in a 5-10 blinds Pot Limit game when the following situation comes up. There is a player in the ten seat who is great action. He is terrible, but he has sucked out a few times and has a ton of chips at the moment. Anyway, he raises out of the BB and gets two callers. The flop comes K 7 8 with a flush draw, and he bets the pot and is called only by the button.

Now, the turn comes an offsuit 4 and the action player once again leads out for a pot sized bet (which was $375- 125 preflop plus a called flop bet). After about 30 seconds the button says "I raise the pot." Before the dealer announces the amount, the action player quickly says "call."

Now, he is supposed to call the 375 and raise 1125 for a total of 1500. Instead, the dealer screws up and somehow tells the button to put in 1125 (375 + 750). He does, and the action player calls the incorrectly sized raise.

Finally, the river brings the flush card and it goes check-check. The button flips over 5 6 for a straight (horrible river check but thats not the point). He is awarded the pot.

Immediately after being given the pot, button overhears a regular in the game point at the dealer and whisper to another player "you see that [censored], thats why you have to pay attention." Button quickly realizes that there was an error that cost him some money but decides to say nothing because he doesnt want to chase the fish and he assumes it is his responsibility to make sure the pot is right.

Three questions:

1. What do you think of the player who clearly saw the error in progress and did not say anything about it?

2. Was the button correct to just let it go?

3. Should the dealer be reported, and how serious of an error is this?

(crossposted in NVG)