While you can "sell out (of something)", you cannot "sell something out" (at least, not in the sense relevant here), so #2 is not correct. I would be inclined to put a comma and the word "then" in #1: I sold them all , and then some people persuaded me to go to the dance hall. However, this of course doesn't express that the person who bought them was the same person who invited her to the dance.
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gambolerWhat would she say?I sold all my flowers to a man who then asked me to go to a dance hall with him and his friends.