How bad could it be?


Senior Member

I've watched Modern Family Season 4 Episode 16 and found a sentence confusing to me:
How bad could it be?

Cam has given Manny's younger brother Joe (who is a baby) an extremly bad haircut, but he is afraid of Manny's mother getting mad at him, which would be so scary that he intends to get rid of the responsibility.
Cam goes up to Manny with the baby Joe sleeping in a stroller and covered with a blanket.

Manny: (delighted after regaining the confidence) ...I feel confident now and I know I can do...
Cam (interrupts): I just need you to tell your mom that you gave your brother Joe a haircut, OK?
Manny (delighted, without checking out the stroller): No problem. How bad could it be? (checks out the stroller and gets shocked obviously) Eh Ah...

Does “How bad could it be?” mean that 1. Manny really wants to ask how bad the haircut has been,
or that 2. Manny assumes that the haircut can't be very bad(He doesn't believe the haircut is bad)?

I assume No.1 is correct, while my friend insists on No.2.

Could you help me please?
Thank you in advance
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