Sociological theories of collective resistance offer insights into how communities mobilize against oppression but often overlook the complexities when the state, an entity relied upon for justice, also acts as an agent of betrayal. Based on 8 years of ethnographic research in Palermo (2016–2024), this study examines the relationship between Sicilian activists and the state, shaped by the dual forces of mafia oppression and state complicity. The present research explores how activists navigate the complexities of collective trauma rooted in state complicity, while simultaneously relying on parts of the state as indispensable allies in their fight for justice. The study introduces the “Dual-Edged State Paradox,” as a novel framework that captures this contradictory relationship. To navigate the paradox, activists adopt two key strategies: ‘fragmented trust dynamics’ and ‘layered collective resistance’. These strategies illustrate how activists continually recalibrate trust and engage in multi-layered resistance, adjusting their approach to balance public protest with collaboration based on the positioning of different state actors. This research contributes to our sociological knowledge on collective action, particularly in settings where activists grapple with both external violence of non-state actors and internal betrayal from the state apparatus.