I thought the referee was okay in the first half, but he completely collapsed during the second half. Cavani didn't do much, and he got a yellow card for basically nothing. Then Fucile gets a second yellow for a fair challenge. Just because he caught Sanchez hard afterwards doesn't mean that the challenge was unfair. Even during the scuffle, the referee didn't have the guts to punish Josema, Godin, Gonzalez, and the Chilean who was choking Gonzalez during that scuffle.
I wouldn't be surprised if sanctions would be given to both teams, though I feel like Uruguay will be on the short end of the stick in this case.
EDIT: I just saw the incident again, and I take back what I said. He might have done not much, but the fact that he raised his hand at Jara in aggression will provoke the referee second booking for unsporting conduct. Yes, you have to be careful, but I console with Cavani in this case as he was almost being bullied like a schoolboy.