He challenges you in the ways of old which translates to:
"Im calling your ass out, I challenge you, but first, let me send out all my minions and a robo-spider to kill you and I'll just keep running away when you hurt me too much.
Oh...there's no more places to run an- .....thats a nice gjallarhorn you have there....."
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Did he really challenge us though? We were only told he challenged us, but he spends the whole fight running from us. As far as we know he could have been calling for help and tried to escape and we were lied to so we'd chase after him. The person who tells us we were challenged is the same that sent us to kill him. If you think about each encounter, he's always retreating while his crew rush in to support him. He drops a walker to stop us, but we corner him in the back of his ship. He calls for everyone to come help, as we gun him down. His crew is still coming in after he's dead, either in a pointless attempt to save him or to save their ship. Or he insulted our mothers.