What happened briefly in chapter 10?
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Dally plans for the police to kill him; Ponyboy knows he's only bluffing when he pulls out his gun, but the goal is for the police to shoot back. His death makes Ponyboy realize that although Johnny appears a hero while Dally appears a hoodlum, Dally was heroic, too. The appearance of the whole situation is much like the Greasers' appearance in general: misleading.