This hand came up in a teams of 4 match of high quality played in EBU land. I wasn't involved either as a player or in a TD capacity but was asked for my view subsequently by South. I don't have the full hand details. The 1NT overcall was 15-17. Both doubles were for penalty. The 2♥ bid was alerted, 2♠ wasn't.
EW are a very regular partnership. E had a 2722 shape, W 4♠ and 2♥. E thought they were playing "system off" after the double, W that they were playing "system on". (You might think that this fairly basic bit of system is not something that a very regular partnership would forget and I would agree with you - but they are and they did). W explained 2♥ as showing 5+♠ and 3♥ as natural. He justified his pass of 3♥ on the basis (in the light of the double of 2♠) that the only explanation for the auction was that E had just ♥ and that one of them had forgotten the system. It would seem that both E and W were in possession of UI. Do you allow the pass of 3♥?