Apparently the reason Will Smith was allowed to stay seated was because amid the talk of removing him, Chris Rock asked that he be allowed to stay!

The way Chris handled the situation continues to impress me.

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Longpatrol · 31-35, M

I think he felt guilty for making the joke and since he precipitated events, he didn't want to make more drama.

Zaphod42 · 46-50, M

According to what the producer said, Chris just wanted to move past it and have the rest of the show go on without any more disruptions. @Longpatrol