I can't see that Matt had any problem other than the faulty switch. There was nothing wrong with the report he left in the correct place, the boss's in-tray.
The manager, however... Well, he's the one who handed the boss some random, sweary bit of paper.
And the boss is in no position to escalate it as he's the one who couldn't find a report in his own in-tray.
("Couldn't find a report in his own in-tray" Is that a euphemism?)