District Police Chief Robert Salisip David, who confirmed the incident, said it happened at the central market area here at 5.30pm.
A 34-year-old fishmonger suspected involved was arrested under Section 148 of the Penal Code for possessing weapons at a riot.
Robert said a 20-year-old jobless man from Kg Mamagun Dalit, Sook, sustained slash injuries on his left elbow and received five stitches while a self-employed 31-year-old from the same village sustained face injuries and fell on the road while trying to flee the group.
The third victim, a self-employed 39-year-old from Kg Binanon Nabawan, suffered head injuries and on his left ear after being slashed with a parang where he received 11 stitches.
All three victims have been warded in the district hospital and are in stable condition. Robert also said the first victim lost his personal belongings like bankcards, saving bank accounts, ASB book account, MyKad and driving licence when he ran from the amok group.
"Initial police investigations revealed that the attack was due to a misunderstanding between one of the relatives of the first victim and the group of men," he said.
According to Robert, the three victims were in a drinking session at a karaoke near the central market since 3pm with four women when suddenly a man came and hit the relative of the first victim who was outside the shop.
The relative then told the first victim what had happened and the three pursued the man who ran towards the central market.
"When the three reached the central market, they saw a group of men waiting for them.
The first victim was slashed on his elbow while the second victim sustained injuries when he fell while trying to escape the group and the third victim was slashed on his head," Robert said.
Robert said efforts are ongoing to arrest the other suspects.
It is understood that the incident was videotaped and had gone viral on the Internet.
In another development, Robert said 34 men were hauled up during Ops Cantas Khas in the township here on Monday.
After documentation, 29 people were released for possessing valid identification documents and not involved in any crime while five people have been handed to the Immigration Department for not possessing any identification documents.