This chapter managed to piss me off.
It showcases how awfully lazy the writing is. Goblin curb-stomps opponents of her same level and and when the reader asks "how?" the answer is: "because, shut up!"
Even the author seemed to realize this wouldn't fly though. So he throws in an info dump that's both nonsensical and pointless, and that pretty much boils down to: "goblin wins because I say so." This is Mary Sue characterization at its very worst.
The thing is, this could have been easily avoided. The world basically runs on Dragon Quest rules, right? And you want your main character to curb-stomp absolutely everyone and everything (which is a bad idea, but I diggress) Well instead of level 99, make goblin level 888. Just say that goblin is exploiting a glitch in her code and that she has no real upper level.
Would that have been cheap? Absolutely, but not as cheap as the author's poorly written explanation or his mom.