Same as other answer. It just has a different source.
It is typically referred to as an incomplete bet or raise.
In summary an incomplete raise does not open betting. When it gets back to the open bet or raise they can only call or fold. Fold to incomplete raise would be silly.
WIKI Poker Betting
WIKI is not the universal standard. Some house rules may deviate.
Incomplete bet or raise
If a player goes all in with a bet or raise rather than a call,
another special rule comes into play. There are two options in common
use: pot-limit and no-limit games usually use what is called the full
bet rule, while fixed-limit and spread-limit games may use either the
full bet rule or the half bet rule. The full bet rule states that if
the amount of an all-in bet is less than the minimum bet, or if the
amount of an all-in raise is less than the full amount of the previous
raise, it does not constitute a "real" raise, and therefore does not
reopen the betting action. The half bet rule states that if an all-in
bet or raise is equal to or larger than half the minimum amount, it
does constitute a raise and reopens the action.
For example, with the full bet rule in effect, a player opens the
betting round for $20, and the next player has a total stake of $30.
They may raise to $30, declaring themselves all in, but this does not
constitute a "real" raise, in the following sense: if a third player
now calls the $30, and the first player's turn to act comes up, they
may now call the additional $10, but they do not have the right to
re-raise further. The all-in player's pseudo-raise was really just a
call with some extra money, and the third player's call was just a
call, so the initial opener's bet was simply called by both remaining
players, closing the betting round (even though they must still
equalize the money by putting in the additional $10). If the half bet
rule were being used, then that raise would count as a genuine raise
and the first player would be entitled to re-raise if they chose to
(creating a side pot for the amount of their re-raise and the third
player's call, if any).
In a game with a half bet rule, a player may complete an incomplete
raise, if that player still has the right to raise (in other words, if
that player has not yet acted in the betting round, or has not yet
acted since the last full bet or raise). The act of completing a bet
or raise reopens the betting to other remaining opponents.
For example, four players are in a hand, playing with a limit betting
structure and a half bet rule. The current betting round is $20. Alice
checks, and Dianne checks. Carol goes all-in for $5. Joane, still to
act, has the following options: fold, call $5, or complete the bet to
a total of $20. If Joane calls the $5, Alice and Dianne only have the
option of calling or folding; neither can raise. But if Joane
completes, either of them could raise.
The tournament director (TD) was just confused. Yes it was an incomplete raise. And it does not open betting. The TD applied a misguided rule of close betting which is just wrong.