Some routes are designed to have an outside release and some routes an inside release.
The route scheme that they had dialed up looks like a 4 vertical concept from trips.Versus trips Michigan State will typically have their weakside safety peak (Poach,Gilligan, Solo are the terms some schools use) to the #3 receiver to trips (count outside in). If the #3 receiver is vertical then then Safety has him, which is what happened by the #3 receiver running vertical to near hash. This is what creates the one on one match up for Reilly to win.
Michigan State is playing a 2 high scheme which means the corner's help is in the inside. Why would you want the the WR to run the route to the inside? Defensive backs are typically taught to use the sideline as an extra defender. If I fault anything on Reilly for anything on this play is that his alignment might be too wide. Some schools will teach a single WR to align on the top of the numbers when the ball in in the middle of the field or on the far hash.
I think some of you need to calm down on the schematics.