The following seems contradictory to me but I got it from ACBLscore Tech Files:
4) CUEBIDS
Most cuebids are not Alertable. However, any cuebid which conveys a
very unusual or unexpected meaning still requires an Alert.
EXAMPLE: 1S-2H-P-2S
If the 2S bid is a heart raise with values or some constructive hand,
no Alert is required. If the 2S bid is a transfer to clubs, an Alert
is required.
EXAMPLE: 1D-2D
If the 2D bid shows the majors (Michaels), clubs and spades
(top/bottom) or some other two-suiter (not including diamonds, no
Alert is required.
I think it can be easily argued that top and bottom is a very unusual or unexpected meaning, hence it should be alerted but in example 2 above we are told that some other two-suiter not including the opened suit is not alertable. Perhaps ACBL needs to fix this but who knows how long that will take. Here is more about cuebids if anyone cares:
CUEBID COMPILATION
This collection of direct cuebids and alert requirements was compiled
by Rick Beye and Mike Flader in summer 2005.
1H - 2H = takeout, Alert only if for hearts
1S - 2S = takeout, Alert only if for spades
1C - 2C = takeout, Alert only if for clubs
1C* - 2C = takeout, Alert only if for clubs
*could be short
1D* - 2D = takeout, Alert only if for diamonds
*could be short
1C* - 2C = takeout, Alert only if for clubs
*Polish Club, could be short, could be strong
2C* - 3C = takeout, Alert only if for clubs
*Precision-style, 5 plus clubs
2D* - 2H = Alert only if for hearts
*Majors (such as Flannery)
2D* - 2S = alert only if for spades
*Majors
The following are not considered cuebids:
1C* - 2C = clubs, any other meaning Alert
*Precision, strong/artificial
2D* - 3D = diamonds, any other meaning Alert
*Majors
2D* - 2M or 3m = natural, no cuebid available, Alert other meanings
*any 3 suits
2C* - 3C = clubs, Alert other meanings
*strong, artificial & forcing
1D-P-1H-2H = if natural or 2-suited takeout, no Alert
1D-P-1H-2D = if natural or 2-suited takeout, no Alert
I would tend to agree with the director here. Seems like NS assumed Michaels rather than asking and that no MI was transmitted (although OP has some doubt about the timing of NS finding out about the meaning of 2♣.