The borderland of Kansas was at that time, as may be remembered, ground debated by the anti-slavery and pro-slavery factions, who still waged bitter war against one another, killing, burning, and pillaging without mercy. The civil war was then raging, and Confederates from Missouri were frequent visitors in eastern Kansas under one pretext or another, of which horse lifting was the one most common, it being held legitimate to prey upon the enemy as opportunity offered. Two border outlaws by the name of the McCandlas boys led a gang of hard men in enterprises of this nature, and these intended to run off the stage company's horses when they found they could not seduce Bill to join their number. He told them to come and take the horses if they could; and on the afternoon of December 16, 1861, ten of them, led by the McCandlas brothers, rode up to his dugout to do so. Bill was alone, his stableman being away hunting. He retreated to the dark interior of his dugout and got ready his weapons, a rifle, two six-shooters, and a knife.
The assailants proceeded to batter in the door with a log, and as it fell in, Jim McCandlas, who must have been a brave man to undertake so foolhardy a thing against a man already known as a killer, sprang in at the opening. He, of course, was killed at once. This exhausted the rifle, and Bill picked up the six-shooters from the table and in three quick shots killed three more of the gang as they rushed in at the door. Four men were dead in less than that many seconds; but there were still six others left, all inside the dugout now, and all firing at him at a range of three feet. It was almost a miracle that, under such surroundings, the man was not killed. Bill now was crowded too much to use his firearms, and took to the bowie, thrusting at one man and another as best he might. It is known among knife-fighters that a man will stand up under a lot of flesh-cutting and blood-letting until the blade strikes a bone. Then he seems to drop quickly if it be a deep and severe thrust. In this chance medley, the knife wounds inflicted on each other by Bill and his swarming foes did not at first drop their men; so that it must have been several minutes that all seven of them were mixed in a mass of shooting, thrusting, panting, and gasping humanity. Then Jack McCandlas swung his rifle barrel and struck Bill over the head, springing upon him with his knife as well. Bill got his hand on a six-shooter and killed him just as he would have struck. After that no one knows what happened, not even Bill himself, who got his name then and there. "I just got sort of wild," he said, describing it. "I thought my heart was on fire. I went out to the pump then to get a drink, and I was all cut and shot to pieces."