The situation is 10 players left and only 9 get paid. I don't know the actual chip counts and blinds, but we know that.....

Max Pescatori is the short stack and he makes an all-in move with A4o
Joe Hachem is the big stack and he re-raises all-in with KK.
Lee Watkinson is a medium stack with QQ and it is his turn to act. Watkinson folds after Hachem tells him that he's beaten.
Minh Ly is also a medium stack and is next to act after Watkinson folds with JJ. He calls the all-in.

A- Was Watkinson's fold because he knew that he was beaten or because he knew that only one more players needed to be bounced before they were all in the money?

B- And what about Ly's play? If he beats Hachem, but loses to Pescatori, nobody is elminated. If he beats both, he's in great shape of course. If he loses to both he is gone, but makes money as long as Hachem knocks out Pescatori. If he loses to both he is gone, but does not cash if Pescatori beats Hachem.