Parataxic distortion: A skewed perception of someone based on fantasy.
I believe there's a lot more nuance and complexity to it than that, it being a psychiatric term, but the above suits our present purposes.
Will Rich's distorted view of Nanase work to the party's advantage?
Will Nanase's impromptu plan to make the most of her blunder pay off?
Has George secretly defeated a elite group of monster trainers in a video game while all of this was happening?
We'll find out the answer to at least two of those soon!