Mostly used for slowing the game down when a player is defeated. Doesn't appear to be related to pausing the game itself, just slowing down execution.
Calls SLIB_SetPause where the amount of frames to pause for is passed in via the operand from SEQ_RegCMD1. This is called when a player is defeated, with smaller numbers being passed in as frames progress. Specifically, it passes in 0x1E once, 0x4 five times, 0x2 twenty times.