Legally, the man should be arrested for brandishing a gun in a threatening manner.
It is against the law to meaningful expose your gun to someone in the heat of an argument. If you were to be arguing with someone and you lifted the bottom of your shirt to expose your gun to them, that is a nonverbal threat of using the gun.
This guy would be arrested and most likely lose his gun card and guns....and like you say, wrong guy and he could lose a lot more.
Pull that on an armed veteran, not so good.
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