While matters seemed fast tending to this extremity, several of the most judicious persons went to Gonzalo Pizarro, and requested of him to reflect that the licentiate Carvajal was one of the principal persons in the country, and that his brother had been already unjustly put to death by the viceroy, under pretence of the licentiate having joined the party of Pizarro. They urged that it was exceedingly imprudent at this time to put the licentiate to death, as that would necessarily renew the discontents which had formerly taken place on the death of his brother the commissary. They even added, that much good service might be expected from the licentiate, were it only in pursuit of revenge for the death of his brother. They insisted that neither the licentiate nor any of the other prisoners had any hand in the flight of Vaca de Castro; but that it might easily be seen that the slightest pretexts were resorted to on purpose to accuse them, who were already under suspicion as disaffected to the ruling party. Teased and fatigued by these solicitations, Gonzalo Pizarro refused to be spoken to on the subject; so that the licentiate and his friends were induced to try another expedient for his release. They conveyed to the lieutenant-general an ingot of gold weighing forty marks12, with a promise of a much larger present if he would save the life of the licentiate. The lieutenant-general accepted their offers, delayed the execution of the licentiate, and prevailed on Gonzalo Pizarro to set him and all the other suspected persons at liberty.

After the conclusion of this business, measures were taken for the dispatch of Texada and Maldonado; and at this time there happened to arrive a brigantine from Arequipa, which was fitted out along with some other vessels, and armed with a part of the artillery which had been brought down from Cuzco. In these vessels Bachicao embarked along with the deputies, accompanied by sixty musqueteers, who were all that could be prevailed upon to undertake the voyage. They proceeded on their voyage along the coast to the northwards, and arrived one morning early at Tumbez, where they understood the viceroy then resided. Immediately on their being perceived making for the coast, the adherents of the viceroy gave the alarm and stood on their defence: But as the viceroy believed that Gonzalo Pizarro was on board in person accompanied by a formidable body of troops, he retired in all haste from Tumbez accompanied by an hundred and fifty men, taking the road for Quito. Several of his people however did not think fit to accompany his flight, and preferred giving themselves up to Bachicao, who likewise took possession of two ships which happened to be in the port of Tumbez. From thence, Bachicao went to Puerto Viejo and other places, where he drew together about an hundred and fifty men, all of whom he took along with him in the ships of his squadron. Among these were Bartholomew Perez, and Juan Delmos, respectable inhabitants of Puerto Viejo.

Continuing his voyage towards Panama, Bachicao put in at the Isle of Pearls, about twenty leagues from Panama to procure refreshments. While at that place, the inhabitants of Panama received notice of his arrival, and sent two deputies to learn his intentions, requesting at the same time that he would not come into their boundaries with his troops. Bachicao sent back word, that although he happened to be accompanied by armed men, it was merely on purpose to defend himself against the viceroy, and that he had not the most distant intention of injuring or even displeasing the inhabitants of Panama. He informed them, that he was entrusted with the transport of the Doctor Texada, one of the royal judges, who was charged with a commission from the court of audience to give an account to his majesty of the events which had occurred in Peru. He farther declared that he should only land in Panama to provide necessaries for his voyage back to Peru, and would reimbark without delay. Lulled into security by these assurances, the inhabitants of Panama took no measures for defence. On coming into the port, two ships which happened to be there, made sail to go away; one of which was taken possession of by one of the brigantines belonging to Bachicao, and brought back to the harbour, with the master and chief mate hanging from the yard arms. This sad spectacle gave great uneasiness to the inhabitants, who judged from this tragical event, that the purposes of Bachicao were very different from his words and promises. But it was not now time to think of defence, and they were constrained to submit, though filled with terror and dismay, leaving their lives and properties entirely at the discretion of Bachicao, who was no less cruel than the lieutenant-general Carvajal, or even more so if possible; being at the same time exceedingly addicted to cursing and blasphemy, and among all his vices not a single spark of virtue could be found to relieve the picture.

At this time Captain Juan de Gusman was in Panama raising soldiers for the service of the viceroy; but he found it advisable to retire on the arrival of Bachicao, with whom all these soldiers now inlisted. Bachicao likewise got possession of the artillery which had belonged to the vessel in which Vaca de Castro escaped from Lima. Seeing himself master of Panama, Bachicao who was a brutal passionate fellow, exercised the command there in a cruel and tyrannical manner, disposing at his will of the goods and properties of every one, violating every rule of law and justice, oppressing the liberties of the community, and holding every individual under such slavish constraint, that no one dared to act otherwise than as he pleased to dictate. Learning or suspecting that two of his captains had formed the design of putting him to death, he ordered them both to be beheaded without any form of trial; and in similar acts of injustice, and in every transaction, he used no other formality than ordering it to be intimated by the public crier, "That Captain Ferdinand Bachicao had ordained such and such to be done." He thus usurped supreme and absolute authority, paying not the smallest regard to the laws, or even to the external forms of justice.

The licentiate Vaca de Castro, who was at Panama when Bachicao arrived, fled immediately across the isthmus to Nombre de Dios on the Atlantic, where he embarked accompanied by Diego Alvarez de Cueto and Jerom Zurbano. Doctor Texada and Francisco Maldonado escaped likewise to the same port, where they all embarked together for Spain. Texada died on the voyage while passing the Bahamas. On their arrival in Spain, Moldonado and Cueto went directly to Germany, where the emperor Don Carlos then was, where each gave an account of the business with which they were entrusted. Vaca de Castro remained for some time at Tercera in the Azores; whence he went to Lisbon, and afterwards to the court of Spain; alleging that he did not dare to go by way of Seville, on account of the influence in that place of the brothers relations and friends of Juan Tello, whom he had put to death after the defeat of the younger Almagro. On his arrival at court, De Castro was put under arrest in his own house by order of the council of the Indies. He was afterwards brought to trial on a variety of accusations, in the course of which he was kept prisoner for five years in the citadel of Arevalo. He was afterwards removed to a private house in Simanca, from which he was not permitted to go out: And in consequence of a subsequent revolution in the court of Spain, he was allowed to remain a prisoner at large in the city and territory of Valladolid, till his cause was finally adjuged13.

On the flight of the viceroy from Tumbez with an hundred and fifty men, as before related, in consequence of the arrival of Bachicao, he retired to Quito, where he was honourably received. In this place he increased his force to two hundred men, and finding the country fertile and abounding in provisions, he determined to remain there till he might receive ulterior orders from his majesty, in reply to the informations he had transmitted by Diego Alvarez de Cueto. In the mean time he appointed strong guards to defend the passes in the mountains, and stationed spies on the different roads, that he might have early intimation of the procedure of Gonzalo Pizarro at Lima, which is three hundred leagues from Quito. About this time four soldiers belonging to Gonzalo deserted on account of some injurious treatment, and seized a small bark in the port of Lima, in which they sailed northwards to a place where they landed, and whence they travelled by land to Quito. On their arrival, they represented to the viceroy, that the inhabitants of Lima and other places were exceedingly discontented by the conduct of Gonzalo, who subjected them to the most harassing and vexatious tyranny, driving them from their houses, and despoiling them of their goods, so that many of the colonists were reduced to depend on other persons for their subsistence. That Gonzalo imposed such burthensome contributions on the whole inhabitants, that they were unable to endure them; and that all were so weary of his tyranny, that they would gladly join any person who might come among them in the name of the king, to relieve them from the cruel oppression and tyrannous violence of the usurper. In consequence of this statement, the viceroy was induced to march from Quito towards San Miguel, appointing to the command of his troops one Diego de Occampo, an inhabitant of Quito, who had joined him on his arrival at Tumbez, and had expended large sums in his service from his own private fortune.