Jono, I think this might be why.
For simplicity I'll replace 'dinosaur' with 'd'.
d1, d2, d3 ... d100 = green.
Take any single perspective.
d1 knows there are at least 99 green.
d1 knows d2 can see at least 98 green eyes.
But d1 thinks, if I do have blue eyes, then d1 thinks d2 could think he also has blue eyes. So d1 thinks there is a chance d2 thinks that d3 will be looking at a maximum of 97 green.
Taking this further, d1 now thinks if I do have blue eyes and d2 does think he also has blue eyes. And if d2 thinks that d3 can also think he has blue eyes, then d2 could think that d3 thinks that d4 will see a maximum of 96 green.
And so it continues.
Note this is not d1's perspective of how he thinks each dragon perceive the others. But his perception of how each dragon thinks he might think, they think, another thinks of another's thoughts about another.
It is hard to get your head around, but before the man speaks it is actually possible that each dragon thinks that if they are blue, then any other dragon may think they are blue and then that dragon would think another dragon who also knew they themselves could be blue, may think that any other dragon .... keeps going until it is possible that any dragon thinking from another's perspective can form a chain of perspectives of perspectives which mean each dragon is concerned there could be a dragon who thinks there's a dragon, who thinks there's a dragon who thinks they could all be blue.
The man speaks and removes this possibility.
It is very hard to explain, apologies if it doesn't clear it up.