What was happening in Cloud Men's City?

Cloud-Men are painting the arch, and upon closer inspection, James and his friends realize that these Cloud-Men are creating a rainbow. The rainbow is supported by a series of ropes, and the Cloud-Men are preparing to lower it down onto earth. Miss Spider realizes that the peach is flying straight into the rainbow and is on course to collide with it. She is correct: the rainbow crashes into the peach and crumbles into several pieces.

The Cloud-Men are outraged, and one of them grabs onto to one of the seagull ropes and begins climbing towards the peach. To make matters worse, James's seagulls are now tangled in the ropes that held the rainbow. Thinking fast, James has Centipede cut the rope that the giant Cloud-Man had attached himself to; as soon as the rope is clipped, the fearsome Cloud-Man is lifted straight into the air. Stunned at this sight, the other Cloud-Men let go of their ropes and the peach is freed from the tangled mess. But out of anger, the Cloud-Men began throwing all the paint and tools at their disposal at the peach, and Centipede is covered in purple paint.