I am south and I choose to overcall 1NT! Ok, so free is not the only one whose 1NT overcalls can be light (and in my case here, light and off-shape.. maybe it is a good thing I play raptor NT overcall if I bid like this). At the other table south passed and then forced to 3NT when north balanced with 2♣.
But the play is the thing. West started a spade to the llow-eiight-queen. I will not get too heavy into which is right, club hook or club to ACE, but you can see quite a different out-come depeniding upon which you play. I played club ACE, my opponent at other table hooked. On club hook, with a careful unblock in hearts, declarer can be held to 3H, 1S, 2D for down three.
Guessing right in clubs, however leads to a three suit squeeze on East. So the position with two clubs to play comes to something like this (EAST has to keep two spades or you win 7C, 3S, and 2 red aces).
West North East South
- - 1♠ 1NT
Pass 3NT Pass Pass
Pass
On the club, east is squeezed. He will let go his diamond, and you do too. Now you lead diamond to the ACE. He still has to keep two spades, so he ptiches a heat. Take heart ace and throw him in with a heart for spade endplay.

Help

West North East South
- - 1♠ 1NT
Pass 3NT Pass Pass
Pass