Fiona and her friends' first attempt at an escape. It's quite a prolonged joke, rather than the genuine escape later, which is more of a Crowning Action Sequence.
1: First, Fiona pushes the statue to open a secret passage. Look at where the statue of the Frog King Harold ends up - kissing the statue of the horse's butt.
2: Then Prince Charming runs in on Big Bad Wolf, the Three Little Pigs, Gingy, and Pinnochio all sitting there casually eating tea and crumpets together like they're all nice and friendly and absolutely nothing's going on. Contrast this to the fact that you saw Fiona and her friends doing this a few seconds ago.
3: Once Captain Hook begins interrogating Gingerbread Man, his life starts flashing before his eyes, and he ends up in a trance.
4 Then the complicated scene where Prince Charming goes to Pinochio and demands he tell him where the princesses have gone because he can't lie. He desperately tries to worm his way out of it with convoluted excuses, until he frustrates the Three Little Pigs so much that one of them simply blurts it out.