I won't mention the casino in case that affects answers.
Low stakes no limit game. I'm in the 5 seat and am not paying attention to all the details of the hand. Pot is developing between player in the 9 seat and player in the 1 seat. Player in 1 seat is on his 4th drink, so maybe not thinking straight. Also, there is a high hand promo going on this day, being paid out $1000 every hour, but two cards in your hand must play.
On the river, board is Q
J
10
10
A
Seat 9 puts in a large bet, seat 1 calls (possibly all in). After action has taken place, I whisper to the guy next to me (so neither player can hear me), "Sucks if anyone has the king of diamonds since their royal won't count for high hand."
Player in seat 9 tables A10 for 10's full of aces. This is where it gets crazy.
Seat 1 looks pissed and angrily flings his cards face up (in a manner to show how horribly he got sucked out on with his awesome cards), but in doing so, one card flies across the table and the other lands on the sleeve/arm of the player in the 7 seat. That card is visible and the king of diamonds. His other card is a king as well. Some players at the table think his hand is dead as they thought he was mucking and the fact that a card landed off the table (yet not on the floor). More than one player pipes up that he has a royal flush since the cards are now speaking (they never touched the muck). Seat 1 obviously didn't realize that's what he had, just thought his kings (and king high flush) got beat by a boat and was pissed. Seat 9 starts insisting his hand is dead and wants the pot. Seat 1 backpedals and immediately says he was tabling his hand, albeit in a frustrated manner. Seat 9 immediately calls for the pit boss. Pit boss comes over, dealer explains what happened, players not in the hand corroborate.
What should happen here?
I want to see what the consensus is before saying what DID happen.