This isn't some gladiatorial crowning type shit where the "loser" fucking dies and all their possessions are conceded to the winner.
For an arrogant person just imagine losing a bet they consider "will absolutely win" and being mocked as "less insightful" (even if that might not happen) is enough to drive them insane.
I mean, sure, that's absolutely correct, but narratively there's no reason for any of that lol. No reason to bet to begin with, no reason to worry about losing one's station. I guess Luliam did get some flak here and there, from the knights mainly, but I guess, considering she was actively dangerous, I also don't necessarily blame them. Meh, I'm thinking too hard over this nonsense. Just wish it didn't go with this particular story beat, is all.