Fumble or Incomplete Pass?

[Deleted]

There was a controversial call in a local high school game last week.  In the last few seconds of the game the quarterback rushed to the line to spike the ball and stop the clock.  The ball slipped out of his hand as he brought it back to spike it and it hit one of his lineman then bounced back into his hands.  He immediately tried to spike it again and it was picked up by the defense and run 94 yards for a touchdown as time expired.  Strangely, the official threw a flag for intentional grounding but that penalty was declined and the game was over.  Below is a link to a video of this play.  The play in question starts at 2:19 on the video:
How should this play be called?

[FredFan7]

If the official ruled intentional grounding, that means there was an incomplete pass, thus no defensive return.

If the official had ruled both actions by the QB a pass, that would be a flag for illegal forward pass as two forward passes are illegal in high school.

If the referee ruled any of those two actions to be a pass, then INCOMPLETE PASS must be his call as the ball hit the ground twice on those QB actions.

While it looks very ugly, it appears that first action was a pass.

Yes the ball was slipping out of his hands, but the arm was going in a forward motion.