Here is the reply from the mod I got.
"The clip you pointed out does appear to have been taken from another montage, so I think it's proper that L!te should be expected to give some credit where it's due. However, I don't think that in itself is grounds for disqualification, since the clip is just of that particular combo.
If on the other hand, the L!te had borrowed an entire string of clips, with the original transitions and editing included, that would be good grounds for disqualification.
It's a valid point, though. If we do similar contests in the future, we'll definitely have to be clear about specifics like this.
Thanks,
Amorasaki"
Personally, I would have DQ'ed anyone who stole clips from other montages, but hopefully they will address that in the next competition (whenever that is).