During a banquet thrown by Alexander the Great (friend and sponsor of Dioxippus) a powerful Macedonian warrior of distinction named Coragus challenged Dioxippus to single combat. Dioxippus accepted the challenge.

Despite his friendship with Dioxippus, Alexander the Great and his Macedonians supported Coragus, while the Greeks in attendance supported their champion Dioxippus. Coragus came on the field resplendent in full combat armor and carrying a full complement of weapons, including javelin, spear, and sword. Dioxippus merely carried a balanced club, and was unarmored. Coragus threw his javelin, which was dodged by the pankratist, and then his spear was shattered by Dioxippus' club. Before Coragus could draw his sword, however, Dioxippus used his techniques to off-balance his opponent and throw him to the ground. With one foot on Coragus' neck, he looked to the crowd of spectators. Alexander the Great signaled that Coragus should be released, and the Greeks celebrated the victory, much to the chagrin of the embittered Macedonians.

This victory was also Dioxippus' ultimate defeat. Alexander the Great continued to be more and more hostile to him for the embarrassing situation, and his friends and other Macedionans in his court conspired to embarrass Dioxippus by putting a golden cup underneath his pillow and accusing him of theft. Dioxippus, put in such a situation and realizing that the Macedonians has framed him, wrote Alexander the Great a letter describing the conspiracy and committed suicide. Whether Coragus of Macedonia was involved in the conspiracy is unknown.