Bounty question/issue

First time playing, I'm on #2 and had an interaction with an Auntie's Choice officer that I... did not like lol. I may or may not have killed him and his entire camp - yep instant regret. Moments later an NPC runs up to me and starts saying how I "Better pay up or face justice!" And i rudely decline, expecting a fight to break out. Nope - "I'll take what you have then." Hold up - I'm this intergalactic badass with a giant lightning shooting assault rifle and I just let this tiny little man with a knife take ALL of my money? I killed him right away expecting him to have my bits - nope, all gone! Is this for real or am I missing something?