>>11911597YES.
The Movie is a compilation of short stories within the Matrix Universe.
This is the ending of one of these.
Previously, while participating in a race, he rose past the limitations of the human body within the Matrix and consequently caused the agents to interfere to prevent him of fully freeing his mind.
Imagine the world itself, turning on you. Eventually resulting in his body devastated beyond repair and his memory wiped.
Yet, despite all that, there was something inside that remembered the taste of freedom.