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Ctrl-H, hold formation.
Only the guys who are out flanking the enemy and in contact without danger of being flanked do I take off hold.
One of the features of the morale system is that it is not just the number of casualties that you have taken, it is also the rate of casualties that you take within a period of time close to the current test. So if you take a lot of casualties rapidly you will have a large negative morale modifier. Stay on hold and you reduce the chance of a chain rout.
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