It's important to notice that Red Cyclone's massive damage per hit and DPS do not allow for resistant units to do much at all. For this reason, even the tougher tank turns into a waste of money immediately, so it should be avoided. Instead, this stage should be beaten with cats that can target the Red Cyclone with abilities, to the point of halting his advance reliably. Cats that work well are Witch Cat, Sanzo Cat (This cat in particular makes this stage trivial), Pirate Cat, Bean Cats, Fortune Teller Cat, Shaman Cat, Delinquent Cat or Apple Cat, as well as some Ubers and collab cats that affect Red and/or Floating (like Momotaro). Cats with extra damage can be helpful to quickly kill the enemies, so they should also be used if available.
Battle: Most, if not, all cats should be at least level 20 and Rich Cat really helps at the beginning of the battle, but it is not required to beat the level. All you have to do is to spam everything, starting with the cheapest cats, as the stack of Sorceress Cats that will form after a while will keep the boss under constant slowness, allowing the other attackers to quickly kill it.