Xiao Xuyang was never the kind of person who liked to meddle in others' affairs. He overheard a bit but didn't take it to heart. He had no idea who Loo Xinyue was, and the only reason he noticed her was because she seemed out of place in the private room when he walked in.
The man and woman were clearly plotting against Loo Xinyue, but whether she was unaware or pretended to be unaware, Xiao Xuyang didn't know and had no interest in finding out.
Xiao Xuyang acted as if he hadn't heard anything, washed his hands, and returned to the private room. However, as he drank and chatted with others, his attention would involuntarily drift toward Loo Xinyue and the couple beside her.
Thus, he clearly saw the woman, at the man's instruction, spike Loo Xinyue's drink with powder. He also witnessed Loo Xinyue, seemingly oblivious, drink the tainted beverage.