What's the correct call in this situation?

Judging from the video, I would have a hard time calling BI here. The batter didn't hinder the catcher and as you pointed out the catcher moved behind the batter. What happened after he made the call?

If the call was upheld, that was terrible.  

There's no reason to. That's PU's call all the way.

SEC crews are not having a good week.

I don't have BI either.  PU may have been screened because he was too low.

I think it's a timing issue (aren't most of them?)

A little background for those of you that aren't NCAA umpires: I can't remember the last time, if ever, video questions on BI weren't on the test. They're tricky ones, and not from the angle where they get called, so they stick in the brain. There's a seed there for us to be cognizant of it, even though it's such a relatively rare issue.

Often times when BI occurs, it is on a play like this--batter bunts or swings, and moves across the line of throw for the catcher. So, given that this batter moved towards the plate (although not over and as part of his bunt attempt, which is legal,) I'm sure that PU had the fuse lit to watch for BI. Catcher moves over, there's a straight line from him through the batter to 2B, and the throw gets airmailed. PU, seeing the movement by the batter as the pitch came in, gets the BI, without thinking of who actually moved which direction.

There's a 50/50 chance I would have called BI here, and that's because I likely would have fallen into that trap.

OP says the Ump called out the runner instead of the batter.  Huh?

I think that Matt is on to something, especially in early season games...many of us who yearly retest or have mandatory rules meetings where "points of emphasis" are highlighted find those rules "top of consciousness" for the near future.....

I am remembering mainly the early days of the FPSR, where I saw or was contacted about the call being made many times in the early season after implementation and after being made a point of emphasis.

I personally fell into this trap by calling the FPSR once where, in retrospect,  I was anticipating the violation as I had been instructed to do, and not making the ruling after I was convinced after it being seen clearly. Again Matt is correct here by saying these issues are almost always impacted by lack of proper timing.