Because Ikta bluffed that he had air rifle people placed strategically, unlike unsleeping dude who didn't do that prep. That means his forces will lose a lot more people than they were ever supposed to. Based on his discussion with Ikta, he's the type to take care of his men and doesn't want them dying if it can be avoided. In fact, he didn't want to fight in the first place and just wanted the enemy to surrender.

His home country losing more than what was at stake in that face off is not determined at this point. Since he can safely go home instead of possibly getting shot, he can come up with new strategies to make up for the loss.

What you have to consider is that Ikta and the others were desperate and had their backs against the wall. To unsleeping dude, this was just one fight among many, many to come in order to realize his ideals. The 10 percent risk wasn't worth it to him.

I didn't really think about the battle too much so no comments there.