Nash expected to get bailed out by the refs. There was contact, no doubt, but the refs let them play.
Nash's mistake was that he wasn't calling time out, Diaw was. But even in that clip you can see Diaw's hands are open for the pass.
Have to give LA props because that was the 3rd time late in the game that they either needed a steal of the foul and they didn't blatantly foul Nash. 1st time late in regulation where Nash passed it to Diaw who they quickly fouled, 2nd time of course the Smush steal, 3rd this play.
The refs let them decide it on the court.