Gonna go ahead and change my prediction actually. i think nanoa got caught in it. im like 99% sure she did. Eventually kyoraku is gonna realize. then he will have a flashback to his wife or daughter that got killed and he is gonna have to call off his bankai after a long emotional internal conflict. At that point he will be left unable to fight an lille will swoop in to kill him but either nanao does something or some miracle haoppens and ukitake swoops in to finish of lille using his shikai to counter lille but then bankai to finish the job. Then Ukitake and kyoraku might have a convo about what it means to be capatain commander and kyoaku questioning himself...
anyways thats the way I see it and I think it is likely but not 100% guaranteed.
Well if translation are correct level 3 is where they both stay in some water type world until their reiatsu runs out and both of them have enormous reiatsu so Kubo might drag the fight on.
What question is how does Shunsui bankai affect other people caught in it?
not long, either lillie pulls off more hax (which is absurd at this point) or Kyoraku reveals another hidden level called "game over" or something. I really don't care for this battle I want to see Nak Le Vaar and The Miracle fight nak le vaar's fight will be plain hilarious and the Miracle's fight will be pure epic. Lillie's fight is eh to be honest.