Umpires after discussion, can change the call to what is "proper and fair". By creating an "unfair" situation, they should have overuled / or ruled on the situation.
Yes, of course the runners can go forth if ball is not caught.... he didn't say that happened.... so when "changing" to what was the proper thing to do, as an umpire who created an unfair advantage, I would go Batter out and runners return to their bases.
Yes, in a NORMAL situation, the ball is live.. but the umpire made the situation "UNFAIR advantage to one team" and "Disadvantage to another" and should do the proper thing.
I have no idea why people think umpires will not talk and overrule each other if it is the proper thing to do. I guess there must be too many UMPIRES who don't. I don't know any personally.
But, in this case proof positve is the change in a call that was loud enough for the fans to hear it. He created an "unfair situation".. good or bad to either party .. the umpires should go with the original call and make the situation "fair" according to rulebook standards.
In USSSA, Rule 10.. the God Rule ( Umpire Section ) it gives the umpire the right to make anything fair according to his standards of what is "fair".