Exactly. It wasn’t right what the official did, and I fully understand Nate’s frustration.
BTW, “relegated” typically means you’ve done something wrong. Typically, people are relegated in road races for violating the center-line rule; they’re usually placed to be last in their “group”. For example, if you win the sprint out of your group of 4, but you’ve crossed the center line and are relegated, instead of first you’ll be fourth. Being down a lap is different. He should have been told about it when he pulled over rather than at the end of the race.