Yes but you have missed the other important part of the interpretation to 17.8.1. (which I helped to write):
The size of this space depends on a lot of things (speed, direction of view, playing surface, etc) and is as large as the answer to the question ‘if a tree suddenly materialized in this space, could the player avoid contact (without a manoeuvre risking the health of their joints)?’
It’s not just a case of who moved last, but did they move into the reserved space in a way that was unavoidable (noting that the size of the reserved space is only a limited space in front of the player, not all the area in front of the player).
As I noted in my reply, it is a bit difficult to tell exactly what is happening in this play.
The other possible view could be that this was an offsetting foul, in that both players initiated contact, in which case the disc would be returned to the thrower.