The ump watch the replay and admitted his mistake publically.
He even went into the locker room to apologise in person to Galarraga.
Nothing was bobbled.
You are right. After watching it again, he caught it ice cream cone style and then did a quick flick of the ball into the pocket. The way the network froze the frame at the moment of the catch made it appear to be a bit of a bobble, but now it looks legit to me.