Its not a simple poncho as you can see its a number of rigid plates linked together so it probably counts more as armour than anything. Particularly as it looks like it has protected him from more than one bullet in the past.
looking at the video again I really think that when you see the green tshirt it is actually a different steef tied up. Something about the face looks different. Maybe that is the plot twist.
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Spending as long as I do here, it's easy to forget that Oddworld has actual fans.
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