For a moment there, there is silence between them.
Loki seems to be savouring the experience.
There is things he could do better. And at the same time, he also notice that his thoughts was replicated perfectly.
He notices it midway of course that he is in a simulation but a more susceptible person would be trapped in that simulation and before they know it, they would already have their determination to fight shatters.
This is also one of the methods of Sovereigns.
When Sovereigns appears, some people did not even dare to lift their weapons.
One reason is because they are already powerful.
The other reason is because one gaze and all of their thoughts are revealed and they have their heart broken even before they pick up their weapon or throw their first shot.
One gaze and their whole fight is already simulated and someone with a weak mind could not help but think of that simulation and believe that they would lose.