Karl very carefully placed the ball in that gap, controlling his nerves to ensure he did not touch an object ball, and Ken called a foul because Karl placed the cueball where he wanted to place it with ball in hand.
After Ken realizes he screwed up he then tells Karl that Karl now need to carefully grab the cueball out of that gap, and then re-place it in the gap yet again, without touching an object ball or it is going to be a foul.
Karl had a reason to be pissed off about that. In the removal of the cueball and re-placement of it back into that gap Ken absolutely would have called a foul if Karl accidently touched a ball placing the cueball into that gap for the second time.
That was amateur hour referee work right there from start to finish.