From ESPN VAR Review.
"Hallam is the first Premier League referee this season to stick with his own penalty call after going to the monitor. It's just a shame that, in this instance, he was wrong to do so.
In my opinion, this was a correct intervention by VAR. The pictures clearly show that the Wolves defender's arm was in an unnatural position at the moment the ball struck.
This incident met the following criteria of a handball offense in law:
• A player is considered to have made their body unnaturally bigger when the position of their hand/arm is not a consequence of, or justifiable by, the player's body movement for that specific situation. By having their hand/arm in such a position, the player takes a risk of their hand/arm being hit by the ball and being penalized.
I'm sure Hallam will reflect on his review process post-match, as this was a clear handball offense given the current guidance and interpretation."
I'm sure Hallam will reflect, with the lovely bottle of wine he's been sent from the Anybody But City committee at Pigmol.
Tl;dr - City fucked over again by VAR.