Carlo seized the strongpoints of Castelbelforte (then known as Castelbonafisso) and Bigarello, but was defeated by Ludovico's forces and a detachment of Milanese allies at Castellaro Lagusello an outlying hamlet by the village of Monzambano.
Forced to retreat across the Adige river at Legnago Carlo and his Venetian allies were pursued and decisively defeated on 14 June 1453 battle at Villabona near Goito.
The historian Ludovico Muratori states that in the battle at Villabona Carlo lost 1,000 horses and 200 men-at-arms and was forced to seek shelter with the Este family in Ferrara.
The Mantuan Jesuit Antonio Possevino instead states that Carlo was captured in the battle, but released immediately thereafter on request of the Marquis of Este and allowed to proceed to Ferrara.
He died heirless, his only son presumably having fallen prey to death in years previous, and his lands passed to his brother Ludovico ΙΙΙ Gonzaga.