[step:Eliminate the existential quantifier when $x$ is constrained only by a finite cut]Assume $E=\varnothing$. Then the conjuncts involving $x$ say exactly that $x$ must lie above every $y_i$ with $i \in L$ and below every $y_j$ with $j \in U$. Define the quantifier-free formula
\begin{align*}
\Theta(y_1,\dots,y_n)
\end{align*}
to be the conjunction of $\Pi(y_1,\dots,y_n)$ with all inequalities
\begin{align*}
y_i < y_j \qquad (i \in L,\ j \in U).
\end{align*}
We claim that
\begin{align*}
\operatorname{DLO} \models \forall y_1 \cdots \forall y_n \, \left(\exists x \, \Gamma(x,y_1,\dots,y_n) \leftrightarrow \Theta(y_1,\dots,y_n)\right).
\end{align*}
If $M \models \operatorname{DLO}$ and $a,b_1,\dots,b_n \in M$ satisfy $\Gamma(a,b_1,\dots,b_n)$, then $\Pi(b_1,\dots,b_n)$ holds, and for every $i \in L$ and $j \in U$ we have $b_i<a<b_j$. By transitivity of $<$, $b_i<b_j$. Hence $M \models \Theta(b_1,\dots,b_n)$.
Conversely, suppose $M \models \operatorname{DLO}$ and $b_1,\dots,b_n \in M$ satisfy $\Theta$. We construct $a \in M$ satisfying all lower and upper bounds. If $L=\varnothing$ and $U=\varnothing$, choose any $a \in M$, using nonemptiness of models of $\operatorname{DLO}$. If $L=\varnothing$ and $U \neq \varnothing$, choose $j_0 \in U$; since $M$ has no left endpoint, there is $a \in M$ with $a<b_{j_0}$. Then $a<b_j$ for every $j \in U$ after replacing $a$ by an element below the finite minimum of $\{b_j:j\in U\}$, obtained by finite induction using linearity. The case $L \neq \varnothing$ and $U=\varnothing$ is symmetric, using absence of right endpoints. Finally, if $L \neq \varnothing$ and $U \neq \varnothing$, let $b_\ell$ be a maximum of the finite set $\{b_i:i\in L\}$ and let $b_u$ be a minimum of the finite set $\{b_j:j\in U\}$, both chosen by finite induction using linearity. Since $\Theta$ contains $b_\ell<b_u$, density gives $a \in M$ such that $b_\ell<a<b_u$. Then $b_i<a$ for all $i \in L$ and $a<b_j$ for all $j \in U$. Together with $\Pi(b_1,\dots,b_n)$, this gives $M \models \Gamma(a,b_1,\dots,b_n)$.[/step]