This is pretty confusing - a few things of note:
A) Some people would consider the AA hand dead once he exposed his cards before the hand is played out. Whenever you expose your hand to the table it's technically a dead hand.
B) If you guys don't consider it a dead hand. Then the turn play makes no sense. You basically agreed that he's going all in for his last 400 blind on the turn. At this point it's on you to either call that bet or fold. The action is on you. There should be no other action until you make your decision.
C) If you had 'called' the turn bet then your hand should be turned over and exposed at that time. The cards speak for themselves afterwards.
D) If you folded the turn, the hand is over. Why is the dealer rabbit hunting?
E) If the player has been deemed the winner of the hand, then he should be faced with a penalty. Like sitting out for 10 minutes - because of his mistake.
To me, the hand should be dead the moment he turns over Aces. I understand it's not his intention, however, it was his error, and he should live with it. However, if you agreed to the call and all in bet on the turn, then I think you folded. It doesn't sound as if you put any more money into the pot. The dealer has no business asking you if you fold. The dealer made far too many mistakes in my opinion in this hand.
If this was a home game or a game you didn't really cared too much about...then probably let it slide and move on.
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