Lu Shu was gone, but not his legend in the black market.
In fact, Lu Shu, Li Yixiao and Nalan Que knew the real situation the best. Lu Shu had shown mercy during his aurablade attack, but he would not survive a joint collaboration between Nalan Que and Li Yixiao. Certainly, though, Nalan Que and Li Yixiao had to admit Lu Shu indeed had the power of taking down either of them if he decided to do so, based on the power of his aurablade and his hidden flying dagger as a descendant of the Hall of Swords.
But it was totally different in the spectators eyes. What they saw was a man who could counter Li Yixiao's fist and then immediately forced back Nalan Que with hundreds of beams of aurablade. He had seemingly effortlessly fought back two Class B experts. How mysteriously powerful!