Hold on, don't you mean 4th place prize? This is a fight for either 1st/2nd or 3rd/4th. Giving Garch 2nd would mean he automatically wins, then loses. Not being able to play doesn't default for a win.
Oh, and I lost. 2-0. First game was one-sided on the Final Smashes, and I barely lost the 2nd game to a high-damage end with next hit wins.