They were at a neutral distance and both in a ready stance. They didn't need resetting because they were both already set, so he called continue to restart the action. No error
Edit* also, what? Hill should have kept moving? He did keep moving. Watch it again. Poatan resets himself when Herb is calling stop, but is standing still (again, ready position at neutral distance) after that and until after Herb says continue. Once Herb says continue, it's HILL who starts moving. He just circles instead of backs up and Pereira advanced cutting him off. Pereira didn't get any unfair advantage and Hill was not in any way disadvantaged, other than maybe turning his brain off and not turning it back on in time, but that would be on him, and it would imply his brain is ever really running. He got the call out and got the call in and was at a safe distance either way.