The Battle of Maguaga (also known as the Battle of Monguagon
thumb|upright|Lt Col [[James Miller (general)|James Miller commanded American forces at Maguaga.]]
Noticing some men creeping through the woods on their right, some of the redcoats thought it was the enemy trying to outflank them and opened fire on them. The "enemy" turned out to be Potawatomi warriors allied to the British under Chief Main Poc, who immediately thought that the people firing at them must be Americans. Briton and Native American blazed away at each other until the Potawatomi realized that they were fighting their own side and withdrew into the woods to the rear.
Meanwhile, seeing the American advance waver, Muir ordered the bugler of the light company of the 41st Regiment to sound the charge. In the British Army, only the light infantry used the bugle; the rest of the infantry communicated using drumbeats. The officer commanding one of the other companies of the 41st Regiment thought that the bugle was sounding the "recall" and ordered his men to fall back. Before Muir knew what was happening, his whole force was streaming off to the rear.