Yes, they were playing with the "3-point rule" that at least 3 balls must pass the head string or be pocketed. I think the incoming player has some options as to what happens on an illegal break and it looks like one of those options was for himself to re-break.
I saw a video a day or two ago in which Potts said that the 4th illegal break in a match (by the same player) results in loss of game and the 5th illegal break results in loss of match. But that video was made before these two most recent big Chinese 8-Ball events, and I don't know whether the rules were the same.