something I hadn't seen before

[slik]

Here's the situation: UTG (seat 4) position player goes all in for about $30. MP1 (seat 7) calls the allin, but does not place any chips out, and his cards are very close to his chips near the rail. Folds to cutoff (seat 1) who not seeing any chips out from MP1, starts to put out chips in an attempt to call, and has put out $10 so far when he discovers that MP1 had already called. So I (cutoff) ask the dealer if I can raise and she says not only can I not raise, but that I must call as well (or lose the already $10 that I have place past the betting line). I decide not to call the floor on this (I had AA), but what would / should the ruling have been? I gave the relative player position because MP1 was as far away from me as possible basically, which is probably why I didn't hear him.