Sonic had just had a fatality from a brawl with Eggman. He watched his death through a monitor, which entails him crashing into a mountain spike at high speeds and breaking his skull,landing on the ground with a blood pile so now he has a permanently bloodied bump on the top of his head to remind him of his death. There were several other Sonics around, who had died in the past and were left to watch more Sonics, or extra lives, live out the life they never had because of their untimely downfalls.
Sonic: “What’s happening here?!”
???: “Isn’t it obvious? You’re dead.”
Sonic: “Dead? Yeah, no, thanks for the movie night, but I’m outta here-“
???: “You. Can’t. Leave. You died.”
Sonic: “I did not die! I never die!”
???: “.. I’m afraid you do. And it wouldn’t be the first time, either..”
The stranger got out of the shadows to show he was Sonic but with a badnik claw on his head to show he died to a badnik in Green Hill, most likely the first Sonic to have appeared here.
Sonic looked around in shock, seeing several duplicates of himself but with either mutilated bodies from how they died or just parts of the way they died attached onto them. It varied from lava, freezing, drowning, cyber corruption, piranhas, etc. He then felt the top of his head and saw there was blood on his glove.
(For simplicity, we’re naming each Sonic from how they died.)
Badnik: “Welcome to your eternity. Our eternity.”
Even more Sonics appeared behind their leader, Badnik, each still being called by how they died. Badnik went over to a monitor to explain the situation to Sonic further.
Board: “You think you’re invincible. But I’ve seen all your deaths. Every spike trap. Every bottomless pit. Every. Single. Drown. That’s what we are. We’re your extra lives.”
Sonic: “All my… Deaths? What are you talking about? I think I’d remember dying 100 times.”