Larry Sanders could not run through Danny Granger's pick because Granger is comprised of various connected materials. So Danny went flying, perhaps in an exaggerated flail. Sanders saw the flop and flipped out.
I can't speak to what athletes should do on the court, but I feel like "don't flip out at a flop" will become the new "act like you've been there before." Players flop, it's a reality, and one we're becoming increasingly aware of via high-definition replay and Beckley Mason's Flop of the Night. So if someone takes a dive at your expense, it's probably best to just let it go.
But Larry Sanders didn't let it go, and the result was hilarious.
This is the archetypal, "Hold me back! Hold me back!" kabuki the NBA is famous for. Sanders was all about fighting when he poked at David West. But his lunges toward the fray calmed into instant stillness whenever a teammate so much as touched him.
The irony, here: It appears Sanders takes umbrage at Granger's fakery, and Larry's angry response comes in a fraudulent form. It's a little like, "Don't you dare act hurt by me! I'll fake fight you into some real pain, mister!"