Merlin was allowing the Matrix to absorb and refine a large amount of the Terra Maxim when suddenly his surroundings switched, and he was back in the castle once more. Before him stood the Legend Zado.
Merlin still held a huge "grudge" against the Legend Zado but this time, within the Maxim Subspace that the Legend Zado had built up so painstakingly, Merlin had wantonly "siphoned off" the Maxims. This had already caused the Legend Zado a "grievous loss", so his current attitude toward the Legend Zado was more apologetic.