This is actually from a coloring book. The goblin in question was trying to kidnap a princess even though Majesty had already told him not to do it. Well, he tricked Lucky into giving the princess a basket which would send her right into clutches. Only, surprise, it's Majesty that comes out. Because telling him to not do this didn't work, Majesty decides being a statue will finally get him to behave. She also snaps his magic stick with a big grin.
G1, when pony royals actually did their job.