Some states force cyclists to use the shoulder on certain roads. If being on the shoulder in such cases gives up the right of way, you might be legally correct, but it seems pretty unfair. But I don't know if this is the case here.

However, at no point did the cyclist have any indication that the driver was doing anything but going straight. As far as the cyclist was concerned, he WAS giving the car the right of way. Short of having the ability to read the driver's mind, I don't see what else the cyclist could have done. If the car is not indicating a turn, you're not blocking his right of way by blocking the turn.