As the smoke clears on Son Goku's Super Kamehameha, the crowd and Goku alike are stunned to see Ma Junior still levitating high above the stadium... still very much alive. And really, really mad.
"Damn you...!!" Piccolo growls. "Even though it was only for a split second... you had me terrified!"
Goku curses. The Super Kamehameha was his trump card, and Piccolo managed to survive it unharmed. The furious Piccolo lands on the ring across from Goku, glaring daggers at our hero as Mr. Announcerman struggles to find words to say. Suddenly, Mr. A and the crowd start to recognize Piccolo... vaguely. It's Lunch who finally confirms suspicions...
"He looks like 'im! Like Piccolo Daimao!"
"Isn't it obvious?! I am Piccolo Daimao, reborn!"
The crowd is stunned into silence.
"Spread the news around the world! After I've put an end to Son Goku, I will become your king once again! Piccolo-sama will once again reign as the world's strongest!"
The stadium goes apeshit. They flee the Tenka-ichi Budokai arena in droves, screaming for their lives as they realize what this means -- Piccolo Daimao is alive!!
(Also, scroll back up to the picture of Lunch and look to her left shoulder. It looks like Senbei Norimaka showed up to this Tenka-ichi Budokai.)
Elsewhere, the King receives the news of Piccolo's return to life.
"Things have suddenly taken a terrible turn for the worst! Ma Junior was in fact Piccolo Daimao!"
"What a pro..."
Everyone has evacuated the Tenka-ichi Budokai (and possibly even Papaya Island) except for Mr. A, Bulma, Lunch, Puar, Oolong, Yamcha, Kuririn, Tenshinhan, Chichi, and Muten Roshi. Though still in danger, Bulma, Lunch, Puar, Oolong, and Mr. A join the others in the area reserved for the participants to watch the fights. Now the true nature of this conflict is out in the open for all to know; the mysterious boy who defeated Piccolo Daimao three years ago was Son Goku... and Piccolo Daimao has returned for his revenge!!
Goku promises not to let Piccolo claim the title - and Piccolo reckons Goku ought to wait until after he's seen his next technique before he boasts.
Piccolo grows gigantic!!
Despite having grown many times his original size, Piccolo is as quick as ever! Goku just barely manages to dodge his attacks for a time, until Piccolo finally smacks him down onto the ring. Tenshinhan offers to jump in and assist Goku, but the injured Goku refuses aid!! If they help him now, he'll lose the title of Strongest Under the Heavens!
At last, Goku finds an opening in Piccolo's defense!
And he throws him across the ring!!
Muten Roshi is astounded by Goku's strength. Not only could he lift the giant Piccolo, but even after firing the Super Kamehameha, his ki has remained consistent!
Piccolo rises to his feet once again, and launches into a flurry of attacks on Goku. Goku again dodges them, but more expertly than before - seemingly getting a hang of fighting this giant foe. Goku lands a damaging kick to Piccolo's right eye, causing the giant to bellow in agony. As Goku leaps in for another hit, however, Piccolo shoots an eye beam out of his uninjured eye... and it connects with Goku's kneecap!! Goku falls to the ground... and Piccolo tramples him with his gigantic boot!!!
But it isn't enough to kill Son Goku!
"I don't care if you are that big - you don't scare me at all! Though I'd be in trouble if you were any bigger..."
Piccolo is willing to oblige.