To me, it reads as JB not moving to the left as he did the previous lap and as MS did in the said lap left enough room for LH to make a legitimate pass. The Stewards did not penalise JB because LH said he believed JB couldn't see him coming. No?
No. I think you simply have the statement upside down. Best indication is that if your reading were right, the stewards would have had no choice than to penalise Button. As I see it absolves Button by stating that he wasn't even as far left as the previous lap, indicating that Hamilton was driving into a gap that was always going to disappear, simply by the guy in front driving normally at this piece of track.
This reading also fits with LHs own words "I was in the wrong place at the wrong time…"