Officer _obe: Welcome first of all. Now to your question.
In my opinion, the TDA Rule we are talking about is Rule 35, "Action out of Turn", which reads as follows, "Action out of turn will be binding if the action to that player has not changed. A check, call or fold does not change action. If action changes, the out of turn bet is not binding and is returned to the out of turn player who has all options including calling, raising, or folding. An out of turn fold is binding.
Based on my interpretation, I believe that one could construe Player 1's statement of "that's okay I call" to be a bet equal to the size of Player 2's chip stack. Based on the above TDA Rule, the action now proceeds to Player 2 who can fold or call. Obviously, Player 2 chose to call.
Granted in most cases verbal statements are binding. However, under TDA Rule 34, a verbal statement is binding ONLY IF MADE IN TURN. Therefore, in this case it is NOT binding.
Now in a more perfect world, it would have been better if Player 1's statement of "that's okay, I call" had been clarified by the dealer to ensure he was in fact making a bet of sufficient size to put Player 2 "all-in". But as it is, I see nothing wrong with the way this ended up.
Chet