Okay, two things:
Q1. How is this even possible? (Tag-wise)
A1. Because he's Red.
Q2. He's breaking game mechanics, he has 7 pokemon, limit is 6! How's he doing this?!?
A2. Because he's Red.

LMAO

So, he's GSC Red, HGSS Red, AND SSBB "Red" all at once?

I'd say the guy's gotta be conflicted, but he's boss enough to handle not a split personality, but one being in several persons. </Yahweh>

pikachu doesn't need to be in a pokeball that is why this is possible!