The South American nations under the sway of Korsgaardianism, New Granada and Brazil, humbled in the Global War by the Liberal nations of the continent. The Confederation of the Equator and Bahia managed to throw out the Brazilian invasion, and in the process tie up critically needed troops and munitions. The United Provinces of South America, the powerhouse of South America, was a sleeping giant that the Korsgaardista invaders had aroused, and the armies who were were the heirs of Martin not only repulsed the invaders but drove deep into their own territories by the end of the conflict.
However, Korsgaardism had made as many enemies as it had adherents in the traditionally Republican South American nations, and with the armies of the Korsgaardists in tatters the forces of Liberalism rose up in both nations in what many call the Second South American Revolution, installing the Second Republic of New Granada and the Second Republic of Brazil. The new Revolutionary governments immediately sued for peace, turning over the surviving Korsgaardist tyrants to Allied justice (though few Korsgaardistas survived the blood-letting of the Revolution). The Allied powers of South America agreed to only minor border adjustments and to hold reparations to actual damages, to be paid out over a long period of time at low interest. Tiny Bahia actually received the greatest reparation awards as it had been the worst ravaged. As peace was restored, the Allied armies gradually ceded control to the Revolutionary governments of New Granada and Brazil.