From the video it looks like the bat hit the ball in fair territory so I have a dead ball, batter out on interference. Everyone else returns to the last base touched at the time of the INT.
Having umpired more of that exact age and skill level than I've ever cared to, I won't question whatever the umpire called. Looks like the proper call is OUT to me. Where is the umpire anyway? If he's behind the catcher I think he's too far back.