The flag says 17 on it, so I assume they were defending. When defending, you win by either knocking out their commander or keeping the flag safe until time runs out. The enemy commander was fine, and the flag was damaged, so I'm pretty sure they lost.
The moral here was that rather than defending the flag as a team, they just sent Layfon out to go beat them all up, which he's perfectly capable of doing. However, that was a just a distraction by the enemy while they went after the flag. They were relying on his strength too much and lost because of it.
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