Ok, the man- Garon- explains that he was one of the passengers on the freighter you saw in the Hangar.
Kuylen and his people killed the captain and took control of the ship in an act of piracy. They have done it several times, it seems; the three ships in the hangar right now are just the latest. They cannabalised the ships for parts. For the survivors on board, they had a different idea.
They were kept as slaves. They only had one purpose- to fight until they died. Room T is the Arena. Whenever Kuylen or one of his men wanted to practice, they could pick a slave, arm him, and go fight him in the Arena. Kuylen promised the slaves that if one of them ever killed one of his men, they would be freed. It never happened.
Kuylen trained his recruits by pitting them against these slaves.
"They were told not to kill us if they could help it..." says Ganon, holding up his left hand- artificial. "But he hasn't gathered new slaves in a while. There are just the three of us left. We though... we thought they were going to kill us all..."