Okay. Yesterday was wild! Are we good? Time for theories.
One of the things I have been wondering about the most during this act of the story, is why Charlie was put together with the band in the MOAT. On the screens in the background we see the band members and Charlie being reconditioned in their prison clothing. We also see the Dictator and the Secretary, but they are clearly different, since they are not wearing the same clothing.
Before Blood, we see Charlie in the bed with something going on on the orb behind him. They are clips of Charlie driving fast, flipping people off, dancing in a club and "then it shows him stumble into an office with a black eye, and they stamp a paper with the DRAAG logo on it" (thank you for your help @xxfangirl365xx), and that is the end of what the orb is showing us, then it loops.
We all know the saying that you see your life flashing before your eyes. I think that is literally what is happening here and litterally ON an eye, too. Charlie seems to have been kind of an asshole. I think he died! My theory is that Draag is some kind of hell. Or a kind of arbiter of good or evil. Or a temporary stopping point before something else. It's like they made the decision that Charlie had not been good enough in life and was then sentenced to the MOAT as punishment in his afterlife.
In the MOAT his spirit is assigned to the Black Parade. We know from the wttbp music video that the band is guiding spirits as they die, that is their purpose. Charlie is doing everything he can to be good now that he is in the MOAT, being punished. He keeps being shown where he failed in his life and he keeps trying to be good - waiting on the Secretary, polishing the eye, etc., because then maybe something will change. But no matter what he does, he keeps being painfully stabbed, again and again, by the vocalist. That is his punishment.
In the first act we know that Charlie have been promoted to the rank of Clerk, so he must have done enough between the end of the second act and the start of the first (yes confusing, but this narrative is nonlinear) to rise in the ranks enough for his punishment to have taken on a new form. Now the tables have turned and he "gets to" be the one to kill and keep the vocalist in line every night. It might start out as fun and cathartic, but we know that eventually it won't be fun anymore (him crying into the phone that he doesn't "want to do this anymore"). After killing the vocalist he has to detonate the bomb vest he is wearing, blowing himself to bits, over. and. over. again.
In his promotion and fancy new suit he might get a feeling of power, but it is hollow. He is still being punished.
We still need to see the third and final act of the story in a few moths. What will happen with Charlie in his afterlife? I am so excited to find out!!