Revealing mistake: When Scorpion and Johnny Cage are in the forest, you can see a car drive by in the far left corner. You have to look really close though.

Mortal Kombat (1995)
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Directed by: Paul W.S. Anderson
Starring: Christopher Lambert, Cary-Hiroyuki Tagawa, Robin Shou, Linden Ashby
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Cage: While you're at it, why don't you call my agent?
Blade: Do I look like your secretary?
Trivia: The only combatant to get a Flawless Victory was Johnny Cage when he fought Goro. A Flawless Victory is achieved when a combatant takes no damage from their opponent.
Question: When Lui Kang fights Reptile, what was Johnny Cage doing this entire time? (01:12:15 - 01:15:50)
Answer: Wouldn't Johnny Cage want to go in to help his "mate", rather than stand their and watch? The question here (because Reptile is a secret character in MK1 and Raiden saying "In Outworld, you will find another guy") is that can Johnny Cage interfere with the fight, or is that against the rules in this tournament?
Not only is it against the rules, but Raiden never said they'd find another guy. What he said was, "You'll find another guide." The guide being Kitana.
That is indeed against the rules.
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Answer: Since the entire fight is focused on Liu Kang and Reptile, he could have possibly waited to see what the outcome of the fight was.