dang, that's a tricky one.
we're talking about Watto from Galactic Heroes VSET5 yeah?
it's a one-time SA, as opposed to a conditional CE...
so, my gut guesses that, even if Watto is defeated, the Slave Owner conditions would remain
(unless, the SA was disrupted)
they gain Savage unless a character with a CE is within 6, Self Destruct 20, and if they ever would join an opponent squad, they are insta defeated.
I'm basing that, on other one-time SA's like Jolt from technicians etc,
which remain after the SA provider is defeated.
or kyle katarns armory stuff, Vong's OoglithMasquer etc,
stuff that remains after they're gone.
or,
multi-faction squads which are only possible because of a piece that has affinity etc.
(this only applies at the outset of the game, so, even if they're defeated during the game,
the multi-faction squad is still a 'legal squad')
that's similar to how Luuke and TK421 can lead to up to 3 or 4 luke skywalkers being on a squad at the same time... under some circumstances.
which would ordinarily violate the "Unique" rule - unique is held to be only while squad building, so that's why its possible to have 2 or more instances of a unique character... unique is not a standing rule, "at any time of play" type thing hehe.
I'd like to see clarification on this,
as it might have implications for some droid squads.
and nom-bomb daisy chains.
Slave Owner says "at start of skirmish", and "for rest of skirmish", so it would probably remain after Watto is defeated.
some daisy chains of self-destructs have been started by a suicidal betrayal attack run hehe.
it can be a good counter to some Vong nombomb squads. position the defector close with super stealth...