Velouchiotis refused to comply with the Varkiza Agreement and moved to the mountains of central Greece in order to start a new resistance movement. The Communist Party denounced him as a traitor, while the Greek army sent units to hunt him down. Many of his associates abandoned him, but he was able to conduct guerrilla activities until June 1945. Then he was surrounded by the government forces near Mesounta. He was trapped and outnumbered, so he chose to end his life rather than being captured. He shot himself in the head, while one of his comrades committed suicide by a hand grenade. When his body was discovered, the head was cut off and displayed in the central square of the town of Trikala.