Because Dan definitively beat Miyamoto, Pinky-Punk was a filthy killstealer, and everyone (which was pretty much all the students) who was there knows it. Since they're busting their asses trying to pin all the failures on the Alliance Leader, this is a huge problem for them because all the biggest failures were caused by Punk-Ass Bitch, and as a direct witness Dan and quite a few others could throw a wrench in this trial by pointing that out. And since Pukey-Pussy didn't actually earn any merits near enough to overcome his failures, doing nothing but honestly setting the record straight is all it really takes to cripple the case against the Alliance Leader.

But if Dan the Hero is dead, or at least everyone else thinks he is, they can leverage that to intimidate the rest into silence. That's why these plants are standing around saying this - they're leveraging the false rumors of Dan's death to astroturf the shit out of the audience.

It's not a question of understanding, but a question of unnecessarily long babble in a Murim manhwa.