Usually a draw results in the loss of both players, but in the Gulag both players will earn their redeployment tokens. This is all confirmed in the official Call of Duty Warzone strategy guide, and I'll explain exactly how you can make it happen - although it's extremely unlikely. If two players are willing to work together, it's possible that everyone will leave the Gulag happy.
Of course, you'll have to fight again on the Verdansk map when you respawn, so maybe that delays the inevitable.
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Everyone has a second chance to live in the Gulag. After death, you will arrive at the Gulag, where you will fight another randomly chosen player in a 1v1 battle.
Your loadouts will be randomly selected - both players will receive identical loadouts - and the map will change between three random variations. After 40 seconds, a flag will appear in the middle of the map. Picking up at the flag will end the match and choose a winner.
But, and if there is no winner? If you wait for the time limit - neither player picks up the flag or kills the other - then you end the match with a draw. If the two players don't fight, they will both earn a Redeployment Token and be sent back to Verdansk. Yes really.
It is possible to survive without dying, but if the two players chase each other, it is unlikely that they will both survive. There is no automatic regeneration in the Gulag. It follows unconditional rules. The damage you suffer is therefore permanent. If one player is more damaged than another, the one with the most damage loses the match.
Gulag matches are completely random, so the chances of finding another player willing to play peacefully are quite low. Still, I just had to sound the alarm and try to spread this hilarious little strategy - working together for peace can actually bring you a better result. You'll have to kill yourself in Verdansk, of course, but that's something to fear later. I'm just saying, give peace a chance.