Fabion in Lago

Gonzales told me it is fine to take care of him. After beating him he does not get knocked down, he dies. Then the whole town goes after me, that leads me liberation of lago which I can not afford to do that. Lol what should I do? Is'nt the towns folk supposed to be not trigger since Gonzales told me it's fine.?

I might be totally off here, as it's been a while, but I think that's one of several cases where the liberation is triggered somewhat easily. Maybe you can pull him far away or something?