What would you have done to restore confidence in your leadership if you were in Alex's position?

I would have done a very similar thing as Alex, although I would have opted to fight without weapons. Alex cuts both Dim and Georgie, and these wounds could prove to be a problem later on, especially if the cuts had hit a major artery. Then, a member would be dead, and the gang would likely cease to be a gang. Alex took a big gamble by fighting his friends in this manner.