This situation happened on a cash game, but I don't see that it would have been different in a tournament (other than the straddle). It seems like all the fun floor calls happen on my days off, so I was not there for this.
$1-2 NL, Under the gun straddles to $5. 3 players call, and the big blind realizes he has no cards. What happened is that the straddle player had grabbed the big blind's two cards and his two cards were sitting out on the line still.
Floorperson gave BB his $2 back, killed the straddle's hand, and let the hand play out.
I don't agree with giving the BB his $2 back, so my suggestion was that we probably should have killed both players hands. Alternatively, since the BB's cards were the ones that were shown, I suppose it would possible to just expose those cards to everyone and kill that hand only and then let the straddle player take his own cards and play those.
/discuss