I don't understand what did he do to counter wall dive?
A combination of mind games, j.strong, well-timed j.fierces, and about 3-4 psychic lariats to beat Claw's pokes. The first round was literally Claw doing wall dives over and over and over again in a very predictable fashion, and Pony didn't seem to know (or bothered to show) how to counter it. I wish the vids would be up soon.
As far as the 5 winners go, they play as a team, they win/lose as a team. I think 5 is a bit excessive, but I suppose with the number of entrants they can get for ST in Japan, it's quite feasible. Personally, I love team tournaments.