Looks like 38 was holding, maybe even faceguard. Offense was 4th and 3, but because of the flag, they were given the first down.
Basically the defense was punished for breaking the rules.
Ok, but what about the offence's play? Why was the line set up away from the QB?
This was the answer I was looking for.
the colts were lining up like they were going to punt, then motioned out of it to that wonky thing. They weren't supposed to snap the ball, but the guy did for whatever reason.
The idea was to force the defense into taking a timeout, but they didn't.
The penalty flags were for illegal offensive formation because they didn't have enough men lined up on the line of scrimmage when the ball was snapped
the reaction from the other team is great.