Because Kyle gave the positions back. Which is an approved fine print in the rule- just like with the yellow line. It's all fine and dandy as long as you give your position back.
Being that the rule book is in pencil, the phrasing could be different. But I rmemeber when the yellow line rule was introduced, they included the line of "If a competitor advances their position below the yellow line, that competitor has the option of giving the position back on the same lap, so as to not recieve the black flag". And I believe that same statement comes from the restarts rule.thanks Magnethead.
as a former rules enforcer, i'm not sure i like "approved fine print" exceptions to the rules, but it's probably fair. obviously a pass through penalty would have been far more costly to kyle.
as it was, the fastest racer on this night won the race. but it sure would have been fun watching him have to come back through the pack!