Telepathic misdirection after failed block

Player A bleed action Player B.

Player B attempts to block plays intercept cards. Player A plays stealth cards. Player B can no longer block. Therefore block resolution ends.

Player B then uses Telepathic Misdirection to redirect the bleed to Player C.

Player C argues that telepathic misdirection cannot be used because it states that can only be used after blocks are declined. Player B attempted to block but failed. He did not decline to block. Therefore Teplepathic Misdirection is not playable.

Is Player C correct?

If Player C is incorrect. What if player A used Crocodiles tongue? Can Player B still use Telepathic Misdirection?

Player C is incorrect.

When there is too much stealth, the only option for player B is to decline to block. After that is the ONLY time when telepathic misdirection CAN be played. Whenever a stealth card is used, there is a new opportunity for defending player to attempt or decline to block.

Note: Player B may have more intercept cards in hand but chooses not to play them. Nobody else knows that, they only know that player B declines to block. You are not forced to use all your intercept.

Crocodiles tongue works in a special way. It is playable only when a block attempt is made (meaning it is not playable after player B has declined to block). If the minion attempting to block doesn't pay the cost, then NONE of player B's minions can attempt to block anymore.

And yes, after crocodiles tongue has been used, player B can still use telepathic misdirection assuming B's minions declined to block.