@Spearmint  
Being miserable and a crossdresser doesn’t boost morale at all! If anything, he’d work better as a mannequin (where he couldn’t move or frown), or as possible bait, for if Rarity decided to make a new “seasonal line”.
 
I’d understand a buck-kick to the ribs, but it’s not like he’ll be in any state to breed for another week or so, at the LEAST… heck; any arousal might very well cause pain for him unless the ice is changed regularly. Rarity basically “broke” a stallion… then again, since it’s her, I doubt it’d be the first time.

@ShimmeringStallion
 
 
He basically stole that outfit, and is punished for it by working as live entertainment to attract customers and boost morale. The nut shot was due to how he tried to flee from accepting his initial punishment.

“You need to be here 24/7”
 
So… she keeps him there on a random clam-bed she likely took from Pinkie after Appleoosa, after kicking him in the balls and shoving ice to supposedly stop the swelling.
 
I’m failing to see the purpose behind all this, especially from a mare who’s obsessed with her work as Rarity is. It’s just… harm and embarrassment without purpose.