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So I've seen Galleon make ranged attacks and then buy melee. Is this due to the special hook rule, or can all colossi make their initial ranged attacks and then buy melee with things they are engaged with?

It's because of Drag. It gives you a free melee attack after pushing the damaged model, then lets you buy more melee attacks afterwards.

Yup, its because of drag. Which is frankly an overpowered rule when its put on models a bunch of ranged AND melee attacks.

Its not a Colossal specific rule, although 2 of the Colossals do have drag weapons(Galleon and Prime Axiom)

A big reason why I dont think it is overpowered is simply because it doesnt work against other colossi/gargs. When a galleon has to stare down an earthbreaker or any others, not being able to use that little trick is very hindering. Besides, the galleon has no other special abilities, whereas every other colossal has numerous tricks up their sleeves.