They did NOT shut the wrong engine down. No.2 had the thrust reverser problem and that is the engine that they shut down.
Look at your simulation again and you will see that Nos. 1, 3 and 4 throttles are forward and all three are producing N1.
Then watch the throttles come back to flight idle.
When the power comes on again it is Nos. 1, 2 and 4 throttles that go forward and that is when the disaster started. You will note that No.3 remains at flight idle.
Therefore the only engines that were responding were Nos. 1 and 4. The No.2 throttle was connected to a dead engine!
Amazingly not one of them noticed that a perfectly good engine (No. 3) had been left at flight idle!