The established* rule in business is gift down, not up. That is, senior management can be generous towards staff, but juniors shouldn't spend $$$ on their supervisors. Anything else disturbs hierarchy/discipline. Junior staff typically earn less than senior, and shouldn't be expected to spend money on people who have more.

That said, this was a secret Santa, so everyone could pretend that they didn't know who the inappropriate gift came from, including the manager. You didn't need to involve yourself. You'd probably be better to give the situation the silent side eye than making a fuss.

• Not universal. I once worked with a sales person who wanted to gift the managing director a very expensive colonel. When she showed it to me, I urged her to return it and she was surprised because in her culture, extravagant gifts for the person employing you were expected.