Actually, it's not incorrect at all.
Are you a pilot or active (non-VATSIM) controller?
I am a very active general aviation pilot just a few hours shy of the 1,000 hour mark obtained in the last four years. My Bonanza is based at a class C airport and I have flown many times into Boston Logan airport, as well as the busiest class Ds of the northeast US (Teterboro and Bedford/Hanscom). I have also flown my Bonanza across the US, from NY to California and back through Denver International. The purpose of stating all this is merely to establish my credibility.
With regards to US ATC communications, I can attest to the fact that controllers
absolutely must hear a readback of "hold short" (both words) if they issue a hold short command. Where this is in their controller's handbook, I couldn't say. However, I have heard on more occasions than I can count on my fingers a pilot not including "HOLD short" in their readback andthe controller immediately and tersely responding, "Sir, I
must* hear the words HOLD SHORT," followed by a sheepish, "Hold short runway XX, Cessna XXX."
Apparently, this also applies to "Position and Hold" as well. One time last year at Boston Logan I was instructed to position and hold. In an attempt to keep radio chatter down to the bare minimum, I opted to respond "WILCO, Bonanza XXX" and the controller did the same thing. "Sir, please read back the entire instruction, including the word HOLD."