Actually, it was a pretty smart play by him I think. IIRC, since NDSU touched the punt, the returner can pick it up and if he muffs it while picking it up, they don't lose possession.
@csabatka1 can you verify the rule on this?
Correct. Rule 6 Kicks within the rule book covers this. Rule 6 is possibly the most misunderstood rule by the average fan and most coaches.
If first touching (actually called illegal touching) by kicking team (K) occurs on a scrimmage kick (aka punt), the receiving team has the right to take that ball at first touching spot.
The only way first touching is disregarded is if there is a live ball foul by either team.
If the returner touches it but never possesses it and kicking team recovers, the receiving team will still get ball at illegal touching spot.
If the returner possesses the ball and fumbles, the receiving team will get ball at illegal touching spot.
If the returner possesses the ball, a penalty occurs, and the returner fumbles, then first touching is ignored and it'll be result of the play.
Rule 6 Kick, SECTION 3. Scrimmage Kicks, ARTICLE 2.
a. No inbounds player of the kicking team shall touch a scrimmage kick that has crossed the neutral zone before it touches an opponent. Such illegal touching is a violation that, when the ball becomes dead, gives the receiving team the privilege of taking the ball at the spot of the violation (Exception: Rule 6-3-4) (A.R. 2-12-2-I and A.R. 6-3-2-I).
b. This privilege is canceled if there is an accepted penalty for a live-ball foul by either team (A.R. 6-3-2-I-IV, A.R. 6-3-11-I-III and A.R. 10-1-4-VII).
c. The privilege is canceled if there are offsetting fouls.
d. Illegal touching in Team A’s end zone is ignored.