"The location is to be reported immediately after obtaining the loot after killing the person. This rule is putting the people with the loot onto a barbeque stick to cook." What Douchebag just said expressed the thoughts of everyone.
This rule is full of evil intentions.
Under the circumstances of having their location reported, the temptation of the Boss Chip, the manufacturing equipment, and the details for it; the person with all three of these things would be under attack from all the opposing players.
The people who were present, even if they were Heavy Armored Warriors with disgusting defense stats like Big Pineapple and Douchebag, they might not be able to survive under such circumstances.
The force that obtained these items would be taking attacks from an alliance of the two other forces.