How is this possible? 

At this point, Adam was an extremely advanced adapter, so it was virtually impossible for him to be hypnotized. Even an adapter of Hebi no Miko's caliber wouldn't have been able to completely hypnotize him like this.

"Perhaps it's not hypnotism..."

Guang Fei's words alerted Adam to the fact that there was perhaps another possibility. He turned to inspect the battle that was unfolding nearby, and he discovered that the state of the battle didn't match up with his memories.

At this point, the Desert Gang was already completely on the back foot, which meant that some time had to have passed since he first arrived here. This meant that the psychic battle just now had actually taken place, but at the same time, it also hadn't actually transpired.

This was a very perplexing situation for Adam.

"I like to call...