It seems that Jesse's attempts to out-maneuver the Admin in his deadly game didn't go over all that well, and when he shuffled off his disguise to reveal that he was secretly one of Jesse's party all this time, he shows just how far his opinion of the hero has fallen by not only throwing Jesse and friends into the aforementioned prison, but also taking one of the companions as his new champion. Who exactly he takes depended on which character, Petra or Jack, you sent to stop the timepiece at the end of the Admin's game, and not only does that shape who is in the prison with Jesse, but it will also come up in this episode when the Admin sends in his champion to fight Jesse to the death.