Heya
Happened to me right now.
1. Beat the Gym Leader, he heads off.
2. Talk to the guy at the bottom right of the arena.
3. Get stuck in an inescapable loop of "What's going on? What happened to the Sensei?"
Tried press-and-hold ESC too, to skip all the dialogue. Did it for 5 minutes now, didn't work. Guess I'll have to restart ...