South reserved his rights at the end of the auction and the TD was called at the end of play. West said that to raise, East needed 5 diamonds because 1♦ could be three, and so it was obvious to sacrifice.
The TD ruled that Pass was a logical alternative to 5♦ and 5♦ was suggested by the hesitation. He adjusted to 4♥=.
When consulted, I was swayed by West's failure to compete to 4♦ in finding Pass a logical alternative. I think we were swayed by the hand records in finding that 4♥ makes (by playing on spades rather than clubs).
The AC restored the table result. 5♦ was reasonable, at favourable vulnerability with little defence. Although 4♥ can be made, it probably won't.
I think the AC decision amounts to: if 4♥ is not making very often then a weighted adjustment would not benefit NS, so there is no damage, and the status of 5♦ is not significant.
W . N . E . S
1♦ P . 3♦ 3♥
P . 4♥ ..P P
5♦ P . P . P
1♦ showed 3+
..P "slight hesitation" acknowledged by East
5♦ bid as sacrifice, "without noticing the hesitation"
5♦-1, NS +50