HiveKueen
Two Pair
So, if there is a house rule in place before play starts saying that a wrongly shuffled stub (which the TDA rules doesn't consider to be a fouled deck) should cancel the hand, the hand should have been cancelled. absent such an explicit house rule, playing out the hand was the correct procedure.35.E: ...Other fouled deck conditions may be defined by local gaming regulations and house policy. If a fouled deck is discovered, regardless of SA, play will stop and all bets will be returned. Once a hand concludes, the right to dispute based on a fouled deck ends according to Rule 22.
Cancelling a hand after significant action is pretty unusual in poker.