Request for a ruling

[dsapery]

Two players in the pot. Player A goes AI. Player B calls. Player A says "you got me" and pushes his cards about an inch forward.

Player B shows a pair of aces and starts raking the pot in. Player A turns over his cards to show he was bluffing.

Player C said "wait a minute, you have a straight."

Player B said that verbal statements are binding and as such the cards were folded.

A ruling was made that since player A had never actually put his cards into the muck pile and that they were still in front of him, the straight is good.

Was this a correct ruling, or not?