Originally Posted by Xurt
SapphireStar, Loz uses his Velvet Nightmare at the very beginning of the fight at the Forgotten City (notice the attachment). This is the only time he uses it throughout the entire movie.
Because later on in that battle, Yazoo stealthily yoinks it from him xD Very neat.
Speaking of the battle in the Forgotton Capital, Yazoo and Loz combine to make a pretty effective pairing. Loz assaults Cloud with his speed and close range attacks while Yazoo takes pot shots from the air.
He later contributes to the fight against Reno and Rude. He shows that he can go hand-to-hand in that one.
And yeah he
Spoiler: killed Cloud
Side note: Velvet Nightmare isn't a gunblade. People at first speculated that it was leading up to the film's release but it doesn't actually do any slashing or stabbing. Yazoo uses it to block an attack from Cloud during the motorcycle chase, but that's about it. It's just a gun.