Loki losing to Shanks isn't the Loki downscale you think it is. His feats and portrayal are set in the books forever, it's just massive Shanks upscale.
To me the funniest part is that Gaban was literally testing Luffy's strength before giving him the key to Loki's cuffs. The whole point is to see if Luffy could actually take Loki down.
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