Yes, those close plays can be confusing. Which just goes to underscore the importance of umpires using proper mechanics, standard signals and loud, clear calls.
"Pointing at the ground" is not a standard signal. If anything, it might be used to indicate "no catch", or that the ball is "on the ground". If you have a catch, just signal and call "out"! Standard mechanic, problem solved.
These guys took a simple situation and turned it into a comedy of errors. And I could imagine it getting even uglier.
Did they allow the call at home (the apparent force out) to stand, or did they allow the runner to score? If they let that out stand, they would have some explaining to do and, as a coach, I'm pretty much going to demand an explanation. Quite simply, if this was a catch, then that runner has not yet been put out.
Were any of the other runners who advanced off their bases before the "catch" was made? If they were, then you have other possible outs to be made on appeals for leaving early.