Forget everything
Everyone in the arena now thought they understood why the Ref hadn't stepped in. It must have been due to the knowledge he had known beforehand. The Ref must have known that the student had a powerful regeneration ability. But the truth of the matter was, that the Ref was just as shocked as everyone else.
He had been informed beforehand that the student had a transformation ability. The audience members were too far away and the screen never focused long enough for them to tell what level Peter's wristwatch had shown. They all just knew he must have had a powerful regeneration ability and now it made sense why they had allowed him to fight in the tournament.
However, the participants knew differently, having seen not only his level but the number of guards that were always around him.
"Is he some type of mutant?" They thought.