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In case 3 of the first game, it was discovered that Jack Hammer stole the Steel Samurai costume, and was wearing it when he walked over to Studio 2. According to Cody, he ran into someone dressed as the Evil Magistrate, and they fought, with the Steel Samurai somehow losing.

However, not many people were in the studio that day. So who did Cody see defeat Jack Hammer? It's hard to believe that Sal Manella or Dee Vasquez could have done it. And there seems to be little reason for anyone to dress up as the Evil Magistrate in the first place. At the same time, it also seems unlikely that Cody would make up a story about the Evil Magistrate defeating the Steel Samurai. So what really happened?

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I'm not sure if you're coming from the perspective of having completed this already or are still trying to figure it out but I don't think Cody says it was the Evil Magistrate that he fought. I'm guessing he saw the fight from quite a distance and couldn't make out who it was.

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Checking again, you are right. In his testimony he says things like 'bad guy' and 'villain.' It seems that Cody was describing the murder itself, not some battle that took place before it as I originally thought. Therefore I think it is safe to assume that when Cody talks about the 'villain' he means Dee Vasquez. –  Larry Wang Sep 10 '10 at 23:01

As far as I remember, there was no indication of who was that Evil Magistrate that Cody saw. But it was clear how Jack Hammer was killed. After the interview with Cody the incident wasn't mentioned in detail afterwards.

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