Alright, on the real-or-fake stuff.
All of those who work for the company know who will win, including the refs, the wrestlers, and the announcers. BUT the wrestlers speak to each other in the ring (some videos have caught evidence of such) and say ''okay I'm going to do ...'' and then they do it. The blood is real, they make a cut with a razor end, usually given to by the refs when the referees check to see if they are okay, and they cut themselves.
Yeah this was a pretty bad one and probably the worst TV incident for Wrestling.