"Nose bleed seats" are those in the highest part of a stadium, or venue, furthest away from the music, or action. They are therefore the cheap seats. The humorous idea being that you are so high up the altitude causes you to have a nose bleed. And why did he say (Now) I'm smiling.. while you (Were) clapping Why were and not 'are' ? Because he is speaking in the pass tense. Are would refer to the present tense. If I wrote something wrong grammatically or in the spelling please correct it (for) me :)

no you are write . everything is clear and very nice... you are also mention one thing more in your question. nose bleed. this word is wrong.. correct word is nosebleed mean , when blood comes out of a person's nose

are is use in present continuous tense like .. she is weeping or they are smiling in her room. otherwise what is the second form of are ... are change into past continuous tense. you know the word nuous ' shows us present time. so we can use here second form of the very .. are refers to ware. we were playing in his ground.