Corrected entry: Genie and Magic Carpet are playing chess. Genie tells Magic Carpet, "okay, move". Carpet only has a king, a bishop and two pawns. Carpet picks up the king and moves it fully across the board to capture Genie's queen and put him into check, (possibly checkmate). A king may only move one space at a time in any direction, therefore, that move was illegal. Afterwards Genie says, "I'm being beaten by a rug", and does not question the legality of the move.
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Correction: The very fact that Genie is being beaten by a rug should suggest to you that he's not very good at chess, and possibly doesn't know the rules very well, which is why he doesn't even notice when the carpet cheats.
Shay