Challenge states (paraphrased) "...the target must discard a card to target any model other than this model with an Action." If a model is targeted by two models that have this action does it:
1. Overwrite the first use of Challenge,, effectivly ignoring the first use.
-or-
2. Stacks, meaning the target model must discard one card to target one of the two Challenge action sources, or two cards for anything else.