the problem started with the dealer
Who DIDN'T MAKE THINGS CLEAR.
This problem could have been completely avoided. When someone asks how much does he have, it's up to the dealer to make sure that amount is both correct and clearly announced.
The floor just screwed it up worse, since apparently hearsay from some guy overrides the actual counts of the bets being made at the table.
This hand also illustrates why cash should not be allowed on the table, particularly in bigger games where it's so easy to confuse (or intentionally hide) amounts. Cash is angle shot city waiting to happen, while chips don't afford such luxuries to the unscrupulous player.
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