20:36a Then the Benjamites realized they had been defeated.

Then the Benjamin people realized that they had been beaten.
-or-
Then the soldiers of Benjamin knew that they had lost.

20:36b Now the men of Israel had retreated before Benjamin

The Israel people had run from the Benjamin people.
-or-
⌊During the fight⌋ the Israel soldiers had run away from the Benjamin soldiers.

20:36c because they were relying on the ambush they had set against Gibeah.

⌊They ran⌋ because they were trusting in the ambush which they had set near Gibeah town.
-or-
This was part of the surprise attack that they had planned against Gibeah town.

20:36b-c (reordered)

Because the Israel soldiers had already set a trap near Gibeah town, at first they lured the Benjamin soldiers away ⌊from the town⌋ by retreating in front of them.

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