I could be wrong, but I think most are missing the point of Substantial Action and Losing Your Right to Act.
People are getting caught up in the fact that all of the action is OOT (I really hate the anagram OOT. It just makes me want to put a P in front of it).
In the original post, the skipped player had ample time to stop the action.
1. There's a raise in front of him
2. Then he's skipped **Why is he skipped? Is he covering his cards?**
3. Then there's a call behind him.
4. Then there's a fold a behind him.
5. Luckily for him only one player folded behind
So first off, this is NOT Substantial Action. TDA Rule 35 is written incorrectly. I argued with the board at length and luckily it's on tape (2011). The point being, that if we as floor people couldn't figure out whether there's been 2 actions involving chips or 3 actions in total, then we have a much bigger problem on our hands. Obviously I didn't read the rule too closely after the debate when it went into print. Glad this topic came up.
INCORRECT
Substantial Action is either: A) any two actions in turn, at least one of which puts chips in the pot (i.e. any 2 actions except 2 checks or 2 folds); OR B) any combination of three actions in turn (check, bet, raise, call, or fold).
This is supposed to say:
Substantial Action is: A) any two actions in turn that involve putting chips in the pot (i.e. any bet and call or 2 calls or raise and a call in turn); OR B) any combination of three actions in turn (check, bet, raise, call, or fold).
Under the above definition Substantial Action has not occurred behind the skipped player and that is the key as to whether they Lose the Right to Act. If substantial action occurs behind, then the hand is dead (I'm a dead hand camper). If not, then you back up the action as you would with an Out of Turn Raise (OTR - I like that anagram much better

) or Out of Turn Bet (OTB) and allow the player to make their action.
In this case, the action should have been backed up and given the skipped player all of his options and holding the player behind to his action IF action has not changed in front of him.
BUT if one more player folds, calls or raises behind here..... DEAD HAND.