Flashback. This is Envy’s worst moment to be in the comic, when she tries to insult Wallace for being gay. :/ At least that’s how I read it- what do you guys think? But I like that his reaction is just to calmly restate that he’s the ninja bomberman, and then tell Scott he obviously expects him to break up with her. Anyway, I think this scene may be part of the reason he hates Envy so much, not just because she messed with Scott. It’s interesting.