Interesting situation I saw this weekend.

So the defense wanted three outs called for two at-bats eh? Nice try but no dice.

The first batter's pop out stands.
After he batted the second time he had batted out of order and was an improper batter. When the defense appealed for batting out of order the ump should have called out the player who should have been at the plate and nullified the out made by the improper batter.

There are now two outs and the next batter is the one who follows the proper batter who was called out.

Correct! How they ruled - One out, two outs, out for batting out of order = 3 outs. ALL HECK BROKE LOOSE! After about 20 minutes, they made the correct ruling. Wow it was a sight to see!

the ump doesnt have to "verbalize" an out.

Depending upon the situation umps do not have to verbalize an out, nor do they necessaily have to signal an out.

The situation described above the ump should have been down the line, pointing to the catch saying "that's a catch, batters out," and indicating the out signal.

However, a high pop up to the third baseman, where everyone in the yard saw the 3rd baseman make the catch what more do you need from the ump? In our association we would not signal that. So umps might give a hand signal for the out, but there is no reason to verbalize anything.

Think of another situation, ground ball to short deep in the hole, batter-runner beats the throw by 3 or 4 steps, should the ump signal safe and yell "he's safe"? Of course not.Everyone knows that he is safe.