No it wasn't, they had lost fair and square (mostly) but then Xanxus just had to show off his power and give the doe-eyed brat another chance. They gambled and lost and the shame would stay with them forever etc etc.

And most people are, probably. At least Dino seems to be. But Squalo's loyalty is absolute, so it's not like he cares. And accepting that shit would mean defeat, and they're not gonna do that. The whole Varia still believes that one day Xanxus will be the boss, no matter how unlikely it might be. It's just the kind of bunch they are.

Squalo snorts, finishing to skin the boar and cutting it open to get rid of the entrails. "You're weird," he finally says. "What difference does it make?"