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Defeating the second makes you the second, defeating the first makes you the first, the logic is simple and generally correct.
It's just unclear whether Delta Force is considered first or second, the Navy insists Delta Force must be first while the Army claims that Butter Knife is really the best, but in any case, defeating Delta Force ensures at least a second-place finish without a doubt.
Forget all the nonsense and talk of true strength, victory or defeat is determined by a single exercise, and this time Phantom is destined to win.
Even luck was on Phantom's side, a coin toss decided offense and defense, and Magus won, so he chose to defend first.
In defense, shields could be hidden away at first, saving them for a ferocious attack later on.
By the rules, the attacking side has one and a half times the number of people, so with Phantom fielding eight, Delta Force would send up sixteen, hardly enough to fill up a single magazine for Gao Guang.