That's how the game mechanic works when you press the 'Rout' (run away in uncontrollable panic) button. If that didn't lead to a penalty then I would consider it a major cheat - use your expensive missile units and then let them rout once they expended their ammunition, like he cited, is such an example.
Utter BS where I am concerned - he was too dumb not to commit in the first place (unless he couldn't prevent to enter an engagement - which again is poor tactics to start with)In fact, even if he did himself withdraw, with all his forces, he should not get a black mark
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