I interpreted it as getting angry and making itself as big as possible to be more threatening. Right before this, it had just eaten a building and spit it out violently, and then ate barbed wire and dropped that, losing Angel in the process. That's when he changes.
Funny, I sensed exactly the same thing, just couldn't quite put it into words like you did.
Jean Jacket seemed hostile to anything with eyes coming into its territory, just as OJ sensed about it.
Now it's frustrated, having missed Angel and Emerald, then being chased off by Lucky's parachute & flags. Finally, a giant competitor floats up into Jean Jacket's own, personal airspace with the temerity to look at it AND wink!
It just felt right for Jean Jacket to go all "big" before attacking Jupe's balloon. It was acting like an animal, just as OJ predicted it would.
And I loved the setup - we're shown repeatedly that Jean Jacket "pops" its prey after sucking it up (that's when the screaming stops). So of course it "pops" the giant balloon as well, fatally.
Gotta say, I did NOT see that coming. Kudos to Emerald for figuring it out and to Peele for coming up with the plot point.
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