The correct thing to do here is to have a dead button. The button sits in front of the just busted SB's seat, and the formet BB and UTG player post their SB and BB accordingly.
The whole idea here is that no one should be allowed to skip posting their blind(s).
The fact that there are poker sites that still handle thing wrong astounds me each and every time I see it. They are definitely WRONG if they allow people to skip their blinds.
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