It is what it is. They know that dragons are very powerful and that dragon fire is very dangerous. So they are not surprised by the state of things, but they are despairing. Apparently, it is not enough to survive being around two powerful beings as they fight. You also have to survive the effect of their battle on the environment. You can't just go into hiding while they fight and then come back up after the fight so that you can resume trying to make something of yourself.
What are they supposed to do now? Are they supposed to continue the competition in these conditions? Who can even fight now while knowing the full capabilities of Soverick and knowing that whatever they do will be a poor imitation of his fight? The competition will become children playing at war games in light of recent events.
Most of the competitors just gave up. It is not because their confidence took too much of a hit. They already knew that they are lacking compared to him. His fight with the armored rhino showed them just how far apart they are from his level of power. So it is not a problem of lacking confidence.
The problem is that Soverick has literally ruined this competition for them. They see no hope of even seeking out a modicum of success in this challenge. They can't even do the little that they are capable of doing because of him. So why bother at all?
Some shook their heads as they watched the fire spread. They lamented, "We are doomed."
The entire competition has become trying to survive the dragon fire that is spreading everywhere. Forget monsters and other competitors, the aftermath of dragon fire is the obstacle to beat if they want to survive this challenge. The dragon didn't fight them. It didn't target them with its dragon flames. But they will still die and it will all be unintentional collateral damage.
Some commented with acceptance, "It is over."
The situation is obvious and they have accepted it. It is their bad luck not to only exist in the same era as the child of the plane but to also be grouped up with him in the same arena. These people are the strong ones. Despite their failure, they understand that it is not their fault and there is nothing they can do about it.
Others broke down and lamented. Screaming over and over again, "Why me? Why me?"
They had so many hopes and dreams. They had things they wished to achieve in this competition. They wanted glory and honor. They wanted some achievement to their name. Now all they will have at best is a good laugh at the memory of this challenge. It will be that time that they died because Soverick fought a dragon. They will laugh while secreting feeling deep emotional pain within them.
The atmosphere of Arena 28 is gloomy at best. The other arenas are saved from the bulk of their calamity but they too were influenced by the events that took place when the global announcement reached them. They learned that Soverick had fought a rank 9 monster and killed it making him the first to do so. He is also the first to reach the 8th step and the 9th step in the entire competition. That is another 6 feats right there making for a total of 29 feats. He just keeps taking in the good things while others are trying to survive.
That notification is a blow to many if they haven't become numb to it. There's only so much you can take before it stops being novel and it becomes normal. It is normal now that someone has earned 29 feats when more than 99% of them have not earned a single one so they lack enthusiasm for it. It is what it is. it just made some very sour.
As for those that haven't become numb to it, then they began to feel existential angst. They began to ask themselves some pertinent questions.
"Am I just weak or is he too strong?"
"What use am I anyway?"
"How can I ever hope to match that?"
"I am not even worthy of being in his shadow."
The reverse is the case for the spectators in the plane. They were able to enjoy that fight from the comfort of their homes and the safety it brought them. Those watching it on their entertainment device even get to enjoy high-definition sounds. The quick-paced battle can be slowed down and the sounds of clashes amplified for their enjoyment. So the spectators feel pretty good about it even when they don't really know how Soverick killed that dragon.
They just saw him take a stance, start to fade away as he stepped forward, then he reappeared behind the dragon leaving a tear in his wake. The popular opinion is that he moved so fast and tore straight through the dragon with his spear thrusting forward. The tear is caused by a skill he used on the spear to make it sharp. They are wrong but it is not their fault. They tried their best with what little information they had.
The other more powerful spectators have more to say about how Soverick killed the dragon. The origin god spectators from both sides are impressed with the battle. What they saw and what they think happened demands that they be impressed no matter their position on the child of the Virut plane.
Origin gods know that laws interact to create concepts within the law matrix and concepts manifest in the world as the physical things we see. A being that is a concept exists between laws and its manifestation and therefore, gains some control over the mechanism of manifestation. The only known beings that can do that are Origin gods. That is a summary of their existence. Soverick has simulated that existence to do something that only they are supposed to be able to do.