What happened is the Punisher is captured by the kid's shitbag family, who plan to sell him off to the highest bidder. Kid's granddad thinks they should kill the Punisher right away, because he correctly believes that the Punisher will get free and murder the hell out of them.
One of the kid's uncles kills the old man, beats up the kid. Kid frees the Punisher, who kills two of his uncles but is too fucked up to do anything else. After a standoff, the kid gets around the other guy and manages to kill him.
Once it's all over the kid considers capturing the Punisher himself, Punisher just kills him.