If a Merchant with Cleave moves out of combat after taking damage, does it die immediately when it loses the Cleave might bonus, or does it survive until the showdown ends?

Ruling: The Merchant dies immediately during the cleanup after Ride the Wind resolves, as soon as it loses the Cleave might bonus from leaving combat.

Sequence:

• Merchant is cleaved and moves into combat (now has 5 might)
• Opponent plays Hex Ray dealing 3 damage
• Player plays Ride the Wind to move the Merchant
• When Ride the Wind resolves, the Merchant loses the Cleave bonus
• The Merchant dies during cleanup with 3 damage marked on its base 2 might

Nuances:

• The showdown/combat continues even after the Merchant dies, until both players pass focus in succession
• Combat continues even if only one player has units remaining at the battlefield
• If moving to another battlefield with enemy units, the Merchant still dies before the new combat can start, as the current combat must close first and the staged combat hasn't begun yet