While the Colonel is telling Martin's story in "That Strange Gaucho Who Fancied Himself as a Writer," why is China Iron both fearful and relieved?

As the Colonel tells Martín's story, he reveals that Martín has escaped. This makes China Iron fearful that Martín will find her and force her back to the settlement as his wife. But the Colonel also tells them that Martín was caught in a homosexual act, which makes China Iron feel a little relieved, because she thinks that perhaps Martín does not want her anymore, anyway.