The Day 1 Arena Event Punishment is a punishment that occurs if an arena event happens after Day 1.
The simulator is exited out of, and once it is re-entered, the cast is forcibly reset. If the Day 1 arena events keep up, the Day 1 Excessive Arena Events Punishment occurs. If no more arena events occur after Day 1, the counter for "Excessive" resets, and the next time a such arena event occurs on Day 1, it will be just regular punishment effects, and the counter starts to go up again.
Chris McLean came up with this punishment to express his hatred for arena events.
Chris should've just exited out of the simulator and left it at that, but he felt that one cast reset was not enough.
This punishment, along with the Day 1 Excessive Arena Events Punishment, was cancelled after an option to disable arena events was added to the simulator.