Conspecific aggressive encounters are highly dynamic, involve a spectrum of behavioral traits, and are largely based on reciprocated interactions between or among individuals. Higher circulating androgens in the winner are a hallmark of male-male competition. While female-female competition is not widely studied, in some species, estradiol (E₂), has a rapid effect on aggression in both males and females. Bluebanded gobies, Lythrypnus dalli are bidirectionally hermaphroditic fish that live in linear hierarchies with a nesting male and many subordinate females. Disruption of hierarchy via male removal (MR) or male addition (MA) leads to social instability. This study compares the rapid changes during status resolution and systemic E₂ within the hierarchy, between MR and MA groups. In MR groups, the alpha female had significantly higher winning encounters with the beta female and spent significantly more time in the nest. Thus, status between females was resolved through an increase in agonistic efficiency and territory acquisition. In MA groups, there was no significant difference in agonistic behavior between males, but the intruder male spent significantly more time in the nest. Interestingly, male-male interaction involved physical contact inside the nest, including bites, shoves, and lateral displays, that was absent in MR groups. Thus, between males, status was resolved through an acquisition of territory that included a greater intensity of aggression compared to females. Systemic E₂ did not change during status resolution in MR or MA groups. This could be explained by behavior being regulated at a local level in the brain, which is independent of systemic changes. Overall, individuals from the two social contexts differed in their behavioral approach to status resolution.