I just don't understand your assumption that South had forgotten the agreement and thought he was showing Majors NO he had not there agreement is that a Double of a Conventional bid shows that suit. e.g. 2♣ Stayman by opps DOUBLE shows CLUB suit.
Oh yes as the 1♦ is conventional used to ask for further information from partner. South decided to Muddy the waters by doubling a Conventional Bid to show that suit, which is what N/S play. No he was not trying to show the majors, that is not what they play.
East called the Director as you guessed the 'Double' by South was Phsycic. ♠ QJ93 ♥ J8762 ♦K4 ♣ Q6 This was a Teams match and South decided that his 'Double' would cloud the Waters somewhat. And it worked keeping the Opps out of NT which was bid and made at the other table. But as a 'Phsyc' is a perfectly legitimate ploy why should the TD give a split ruling or even consider it.
[hv=pc=n&w=sat62hkq3djt6ca42&e=s74ht9da9752ckj98&d=w&v=0&b=8&a=1c(could%20be%20short)p1d(Alerted%2C%20not%20asked%20about)d(not%20alerted%20because%20it%20shows%20that%20suit%20over%20conventional%20bid)1sp2cp3cppp]266|200[/hv] Result 3♣-2
So for example you respond to your partner with a bid that you have forgotten has a partnership understanding. You claim mis-click are you saying your Partner is entitled to know ??