Seeing all four hands, the defense is very clear. But even not seeing all four hands, you should be able to work out what is happening here from both east and west after trick one. Time to consider how the defense should do better.
why would you not want to switch to the heart after spade 2 to he King-Ten?
why would you not want to false card with the original fifth best?
why would you want to unblock spades if partner had five spades?
why might you want to unblock a high spade even if partner had only four spades?
As south, you do see why you should grab the heart with the king, not the ace.
Declarer was not punished for his mistake, because although NORTH did the correct thing after that by ducking both the diamond queen and jack, to avoid the diamond suit running, on the next trick, declarer lost a club hook to west, but west returned a heart, giving declarer 2♣ (after he continued clubs), 3♥, 3♦ and 1♠ to make.
The table with the natural auction was equally defective defense. East won the ♠King and correctly returned a spade. WHEN south won the ♠A on the second trick, West made the mistake of failing to unblock the spade suit. Notice, if west throws a high spade honor, the most south can get is 3♦, 1♣, 3♥ and 1♠ before the defense gets in and takes enough tricks to defeat the contract. What I didn't tell you was that North returned the ♠3 (not the ♠4, so South thought North had only 4 ♠ so unblocking might not occur to him.).