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The leader of the group of men went a little overboard there for a simple case of mistaken identity. He didn't need to go as far as killing him over it. It was even dumber for the other guy to try to get revenge. He threw his life away trying to get revenge when he knew he was outnumbered and out skilled. I guess his honor meant way more to him than his life. Lucky for him, Itto got revenge for him since that was his target. Respect to Itto for using the tōrō he bought for the two guys who died unnecessarily.