Yes, you end up with a larger capital loss.
But I'm missing something here - do you know that this is your situation? That is, do you know that the ordinary gain is greater than the proceeds? I thought you were just wondering/worrying about it. But I didn't think you actually knew that you had the situation.
A few years ago (maybe 5 or 6), I checked the K-1 site to get an estimate of the ordinary gain that would get triggered if I sold my ETE. That was when ETE owned a half dozen other MLPs and the ordinary gain flowed up the chain. The web site gave me an estimate that the ordinary gain would exceed my proceeds. I sold anyway and my actual K-1 showed something totally different - the ordinary gain was nowhere near the estimate I had been given.
Not to beat a dead horse, but a few weeks ago an MLP CEF (FMO) announced that they needed to record a $ 4.20 per share tax liability for taxes they would owe on the sale of MLPs. The corporate tax rate is 21% so the gross taxable amount this would equal is somewhere between $ 17 and $ 20 per share, depending on what rate they used for state corporate taxes. FMO's net asset value at this time (before the tax liability) was $ 10.56. So they were saying the taxable amount they recognized maybe was twice as much as their MLP investments were worth. Sometimes, stuff happens. Not often, but sometimes.