Flames and Graces strange behavior

Classic Fighting Games Ultimate Marvel VS Capcom 3
1

EDIT: Clip straight to the spot.
http://youtu.be/VHymzIAejxI

Why did the Flames of the Faltine and Yellow graces interact the way they did at 23:53? There could be a possibility to fake people out.
http://youtu.be/bJ2Se3eTRjo