Ivan IV created the Oprichniki, a paramilitary force loyal only to him. They exiled, tortured, and murdered traitors, real and imagined, like the later Soviet secret police. When Ivan believed Novgorod was treasonous, he led the Oprichniki to loot the city and massacre its inhabitants. Novgorod never recovered. Later, when the Oprichniki proved unable to stand up to a real military force, Ivan disbanded them and forbade mention of them.
The painting shows a Russian noble, accused of treason, forced to dress as a tsar and be seated on a throne. The Oprichniki, mockingly pretending to be his court of nobles and churchmen, are about to kill him.