Yeah there is no way that shanks beat Loki honestly one vs one. Loki calls him coward and there's reason for that..
Either it wasn't one vs one and it was all red haired pirates vs Loki instead or he tricked Loki in someway or he just talked him out of it and told him to wait for... Certain...
Some really shady drawing in that last panel. Copy-paste Luffy and ragnir and how come both eyes and nostrils are visible on dragon Loki? Saw some picture with only one eye and nostril and it was so much better..
IF Loki ate the squarell fruit and IF he can manipulate his size he could just run inside Harald's mouth, go to his stomach and then enlarge himself. I don't care if you are immortal or not you wouldn't survive that.
With squirrel fruit Loki could climb up that big ass tree with amazing speed. Think if he also has hideout somewhere in the three where he has hid some wild stuff over the years just like real squirrel.
Maybe the hammer ate the fruit/fruit forced itself into the hammer and the chest is empty after all. Loki doesn't have any fruit and instead he has ragnir that has that legendary devil fruit. Or maybe not.
World government needed some kind of story after all this and I bet garp was forced to be quiet in some way and play the role of a hero. It would be only plausible explanation to the people of how xebec was defeated.
Maybe threatening him that they would kill everyone he loved. And then they...