Mo Wuji only climbed to the eighth step and was ranked bottom out of the 200 over outer disciples. The other fella who was ranked at the bottom with him was a guy called Chao Buheng, who was also a Channel Opening Stage cultivator. Chao Buheng was at the Great Circle of the Channel Opening Stage Level 9 and was only one step away from advancing into the Spirit Building Stage.
Even though everyone would be staying at the outer sect mountain, there were separations even within the mountain itself. Mo Wuji, Chao Buheng and the 17 others who did not make it to the 10th step were naturally looked down on by the rest who made it. They were made to queue at the back even for their registration to check in to their residence.