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I'm confused, at the apartments you eventually unlock further destinations, Squad PvP, Squad PvE & Squad Treasure Hunt.

Is this an actual PvP battle, if so why is it there when you have the lobby or is it a battle against the other characters you meet in the game, still part of the single player.

it's a bit like bounty hunting, fighting named npc's in the fields

Thanks for the reply, I figured it out myself, they should have named it bounty hunt instead of pvp, would have made it clearer.