Leo understood the gist of the situation based on Mu Fan's explanation.
Although she couldn't explain the whole picture clearly, she still told him enough for Leo to draw his own conclusions.
And the key takeaways Leo had from her speech were:
1. Faye belonged to the Evil Cult. She was a member of that universally hated group, which most likely meant that his own backer was the Evil Cult as well.
2. Faye was actually a part of the Mu Clan, and the Mu Clan seemed to have no idea that she had defected.
