I think this translation is wrong. From the other translations available (which are poor quality but in this case I think are more accurate), Chae Moon Juu isn't genuinely trying to talk down Lee Ho-Geuk, and his inner monologue is talking about how he'll benefit if he can provoke them into escalating the situation. Then Lee Ho-Geuk shouts "Haha! Such nonsense! Of course we should stop now!", which is why everyone is suddenly confused.