Li Huazhao made the conscious choice to escape into the village; he wasn't so desperate that he would rather die than face his situation, so he must have had other information, knowing the village was not a certain deathtrap.
The village is the site of the Original Strange Talk, the crux of the matter.
It appears that the village is essentially Cyber City's "second phase" area, a necessary path for all players, just like the Prison Mirror Copy's "First Mirror World" or the "reality" in the rabbit game.
This Great Elder clearly knows a lot.
Yu Liang pondered thoughtfully, his gaze at the Great Elder now tinted with a hint of aggression.
If Li Huazhao could go, why couldn't he?
He turned to the other players beside him, his words terse and forceful, "Prepare for combat."
