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Scoundrels are just like that, a flabby big guy with an exterior of false strength, always clenching his fists, provoking the muscular neighbor. The neighbor stays quiet, and that fat bastard starts to think he really is something, so he becomes louder and more insulting in his provocations.
Then one day, when the neighbor clenches his fist, ready to genuinely fight and steps out the door, the seemingly strong but actually weak fatso begins to feel fear. But by the time the neighbor's fist actually lands on his face, the fat guy immediately cowers.
Because at that moment, talking tough genuinely means taking a beating, and it might even get you killed.
It's not that Gao Yuan had some sort of magic, but the banner of Da Hong Third Company did.