The bandit leader made two mistakes when he advanced to face Amon.
His first mistake was underestimating Amon's cultivation level. Amon's Concealed Ghost Body made the bandit leader think he was still at the Transformation Stage when he already had the same cultivation level as the bandit leader, which was the Beginning Mystic Stage.
The bandit leader's second mistake was misgauging Amon's weapon. The ceremonial dagger was a high-tier runic weapon. His longsword was only a mid-tier engraved weapon. Without using any art to give his sword an enhancement, it was not the ceremonial dagger's equal.
These two mistakes cost him his life. He didn't even realize what had happened when his head separated from his body. It was the same with the other bandits. They couldn't believe their leader had met his demise in such a swift fashion. They were gawking at the sight, thinking that what happened was probably an illusion.