This level is a boss fight. Head up the stairs and ignore the pink creatures on the walls. Keep heading up and you'll soon arrive at the boss, who stomps around, shoots fireballs and can also summon his little minions by jumping up and down. The minions really don't do much as they fall through the stairs. Simply crouch and get under the boss, as you should be fairly safe there, and then start whipping for an easy win.

-I don't know what the deal is with that massive chain on the right side of the screen. This is the only level to feature something like that.

-The boss of this level originally had a totally different design. This design was featured in an issue of Beep! Mega Drive, a Japanese SEGA magazine. However, in the final version, when the boss jumps up and down, it causes a bunch of minions to fall and roll around. If you take a look at the sprites for these...

...you can see that they're actually based on what this boss originally looked like, just colored differently.

-It may look like the steps go on and on forever, but if you do keep going...

...they do actually come to an end eventually. You can drop down from the last step, and it'll send you back a floor.

-There is a sun at the top of the background of this level, however, you never get to see it in normal gameplay because it gets covered up by the HUD:

Using an emulator to disable a background layer reveals it.