Seems to me what you described is a cyclist passing on the inside or traveling in the wrong direction if there was time for the other driver to wave thanks! Thi

Seems to me what you described is a cyclist passing on the inside or traveling in the wrong direction if there was time for the other driver to wave thanks! This would put the responsibility squarely on the cyclists shoulders. Chances are, if there was an exchange between the cyclist and the other car's driver, the car owners insurance will pay out unless you recorded their license plate number and notify your local authority as a witness, but it sounds to me like you believe the cyclist is the victim so IDK. I was always taught to never wave or otherwise indicate to another driver to proceed but slowing down is fine, and never ever ever EVER act upon the invitation or waiving from a pedestrian to proceed(Such as a person waiting at a crosswalk that you stop for that waives you to go) as the person in the vehicle is always in charge of that situation. I know this was not your situation but feel it is relevant enough to mention.