(urth) Typhon

[Chris Laybourn]

I just finished a first read of Urth of the New Sun so I'm really enjoying this chain.  
 
Can someone explain to me what happens in the chapter where Severian encounters Typhon back during his reign?  Typhon wants Severian to demonstrate his powers somehow and he pulls a dirk or knife and stabs it into a table but then we move on in the story.  I'm sure there was something implicit in the book but I missed it.  Thanks
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