The actual hand was something like the above (don't remember all the spots). Yes, the 1NT bid was forcing by passed hand. Whether this is a good treatment is unclear to me but it's what they were playing.
At the table, I passed over 2♠ and partner passed it out. Perhaps partner should balance, but I don't think partner can find a double with three small trumps, and 3-minor is somewhat touch and go. The end result was 2♠ down two on a trump lead and continuation.
In hindsight I think a double of 2♠ was called for. The trump holding is ideal for defending, and I definitely don't want to hear 3♦ (which is a possibility especially without some clear agreement about the meaning of a balancing 2NT here).

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