Towards the end of the first-half in their World Cup quarter-final, Manchester United star Bruno Fernandes went down inside the box, and there were claims for a spot-kick.
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However, Tello dismissed the calls from Portugal and let play go on, with the official soon blowing his whistle for half-time with Morocco 1-0 up.
And it sparked a furious response from the Portugal players, who clearly lost their heads at half-time.
After the incident, talkSPORT's Hugh Woozencroft said: "Portugal are rattled. They are absolutely rattled. The entire team surrounding the referee at half-time.
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"Bruno Fernandes wanted a penalty. Pepe wants a foul every time the ball goes into his area. Joao Felix has just kicked the soft covers that protects the cameras.
"Octavio is arguing with a Portugal substitute telling him to keep his head, pushing him away. It's only half-time, you're only a goal down!
"Morocco have made it this way and made Portugal lose their cool. I think Portugal thought this would be more straightforward and maybe they underestimated their opponents."
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Nigel Adderley added: "That looked to be a dive to me. Ridiculous."
Morocco held on to win the game and become the first African side to reach the World Cup semi-finals thanks to Youssef En-Nesyri's leaping header.
It was akin to Cristiano Ronaldo's famous header for Juventus, with talkSPORT pundit Dean Ashton in awe of the Moroccan's monumental jump.
He said: "What a leap this is from En-Nesyri - it's like he's jumped on a trampoline!
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"Portugal goalkeeper Diogo Costa comes out and thinks he's claiming that easily, but En-Nesyri! He's flying! There's so much ground beneath his feet, he leaps into the air and he powers it in.
"Costa's mouth was wide open, he couldn't believe how high En-Nesyri rose for that header."