Step 4... If, due to the use of Resolution abilities, one player loses all the dudes in their posse (i.e. the posse is aced, discarded, or sent home), the shootout immediately ends; skip to Step 7.
Step 7. Chamber Another Round
Both players discard their draw hands. If only one posse remains, that player wins the shootout. If both posses have been emptied of dudes, neither player wins the shootout. If both posses still have at least one dude each, go back to Step 1 to start the next shootout round.