Actually the final call was correct under the rules.
Rule 12 - Instant Replay, Section 3, Article 3, Dead Ball and Loose Ball:
Reviewable plays involving potential dead balls and loose balls include:
..... d. Loose ball ruled dead, or live ball ruled dead in possession of a ball carrier when the clear recovery of a loose ball occurs in the immediate continuing action.
..... 2. If the replay official rules that the ball was not dead, it belongs to the recovering team at the spot of the recovery and any advance is nullified.