Another interesting scenario, Kaloes!
It seems everything is happening very quickly with not much time to think of many options here. My first thought is if the two friends could try pulling the third one up, even with the weight of the other guy attached to him (save two birds with one pull, sort of), although that may not be possible as the weight just may be too much to bear for them. I think it would be noble for the third friend to tell the others to go and he would catch up with them, but that last part is probably not gonna happen, and everyone would know it, I think. If anyone had a magic spell or potion, now would be the time for it.

The very last resort would be cutting the arm off, but it might have to happen in order to gain freedom. Unless, there was some way to obtain freedom even after the possible long fall into the generator ?????