I lived there. It DID happen exactly the way you described. Yes, it was ugly. The white candidate who finished first conceded because the campaign was getting so ugly. The runoff was cancelled.
I recall Vermont has (maybe had) a requirement that the governor get a majority vote, with the legislature deciding among the top two finishers if no one had a majority.
A few years ago the top candidate finished with slightly less than majority but the #2 finisher waived his right to a runoff in the legislature.
Vermont still has that requirement and the legislature will be selecting a governor to fill the new term. No candidate got 50%. The Democrat incumbent Schumlin had the lead, but the Pubbie won't concede.