A co-worker of mine believed it to be out of line for the floor person to tell the other player "he's done this before when he had the nuts". However, I feel that when you identify a cheater cheating, it is in the best interest of the tournament for the floor person to protect the player who is being cheated.
While I don't believe it's "out of line" for TK to say what he said, I do think it's unnecessary to inform the table how another player plays under certain circumstances of any kind. When you make a statement like that, as the active TD, you're influencing the action. You don't know for a fact that Freitez has the nuts (pocket 5's). You don't know if Yanalt has a strong hand as well.
I'm in complete agreement that it is the TD's responsibility to protect other players from angle shoots like this and make an alternate ruling using rule #1. The best possible ruling here is to allow Yanalt the opportunity to declare himself all-in for the hand (no further betting action) or allow him the option to continue betting. I believe Nick suggested that as well. That's how you protect a player from further undue loss, rather than forcing them to make a decision to call an additional bet. If Yanalt then wants to raise, the responsibility then falls on him.
Lastly, 100% there should've been a penalty issued. Probably one strong enough to which Freitez lost most if not all of the chips he just won. JMO.