It looked to me like he was setting a pick, and he would be entitled to his own space and not need to get out of Hydes way within 1 yard of the LOS. I'm no ref, but according to the announcers (who know more than I do) it was a legal play. Plus the flag was very late it seemed, unless it was just the snow that made it seem that way. And the way they were basically letting everything go all game, it seemed odd to call that.
But the good guys won. That's the important thing.