To be clear, the show will only have two seasons. The original premise was 5 seasons, but they decided to setup season 2 to cover 4 years over 3 episode arcs. But each season would take about 2 years to produce so the show would have involved more than a decade of work to complete including pre-production which Diego Luna balked at, so they shortened it to 2 seasons.

I don't think they wiped floor 2 because the guy said he was shuffled back in. I think it's because another prisoner recognized him.

2:42 The Empire rules by fear; hence the shock rods and sparked floors. The doubled, tripled everyone's sentences--what does that do to a person psychologically? The day to day trauma and abuse inflicted on prisoners takes a toll--you pointed out the suicide, but don't forget about Ulaf who suffered a massive stroke just one story ago. Working a 12 hour shift, having much for food (with or without flavor), stuck in a room with white walls everywhere for the rest of your life will start to wear a person down mentally real quick. Imagine that for 6 years, getting out and thrown back in again. Would you have the will to fight? Would you have the will to tell someone? Your mind would probably already broken down by then or you might have already given up, as you realize that you were never going to get out and because you've already been there you know you can't escape--no one's ever escaped before, right? That said, the doctor said that they had made a mistake and placed a prisoner that was on level 4 back in the prison on level 2. And it sounded like the confirmation was made by other prisoners doing other duties. I'm not too sure it was the prison itself that made the mistake or the Empire. I assume they physically removed the prisoners from the prison and put them before a stormtrooper or what have you like they did Cassian and the mix up happened there--the Empire isn't using facial recognition technology now, so I can see how a huge f'up like this could happen--the issue of the Empire having Cassian in their own prison and them not knowing it is a huge f'up. I wouldn't be surprised if Cassian is the reason they later implement facial recognition software galaxy wide.

The prisoners who are released were sent to a new prison, where they would presumably be either worked some more, or eliminated. Whether this is new due to the tightened security measures of the Empire or is it was prior practice isn't clear. Regardless the effect of the revelation is the same.

Only 4:51 minutes in to your reaction guys and you probably worked it out by the end of this episode but you did say correct me in the comments lol. They're meant to be sent to a completely different prison. The inmate was sent back to Narkina 5 in error.

Why is it so funny when Kino could not swim?