Dave, a caution flag on the first lap is only a local caution and applies only for that area from where the flag was thrown to after the incident that caused the caution flag. A red flag before the first lap is complete will result in a complete restart. A red flag after the first lap is complete (and the completed lap is determined by the position of the leader), is a single file restart based on the running order at the last full lap.
I did not see the incident you refer to but if it was a yellow flag, the race should continue.