I had to watch this several times to get a handle on what happened...
It looks like Ygor Kaganov (the SB), who is the player to the left of Ms. Barausova (the button), got a look at her cards when they flashed as she re-checked them: note at around 40 seconds he says "I saw her cards". The cards were not exposed on the deal so far as I can tell, so per RRoP "cards flashed by a player still play".
The TDs logic appears to be that because the player to her left who has not acted knows the identity of her hand and has announced same to the table, he (Kaganov) would be acting with knowledge of her hand. The BB (Maximov) of course also has cards and would act with that knowledge.
I think the TD was trying to level the playing field by giving the player two to her right (Schemion, the raiser), the option to re-consider his bet in light of knowing her hand, as his opponents (in this case the SB and BB) would know it before they would act..... As it unfolded, the TD exposed Barusova's strong hand to all (A-K), and Schemion did retract the raise and make it a call only. Not sure if the TD gave him the option to retract and fold?
Of course an alternative consideration is that in many cases of deliberate (or accidental) card exposure we don't automatically back up the action. This situation is somewhat unique because it happens right during the first betting round pre-flop and the raiser is the first bettor after the BB. This is a more convenient place to introduce such a remedy, very early in the hand with only one post-BB bet.
This hand is likely to be discussed for some time... to see if any standardized solution can be found.
Thanks alot for the post!