it goes something like "paragon is incoming" then "paragon has retreated" and then it ends
Hm, that sucks. Well, I do know that choosing Attack, Hold Position, or Escape can affect which sides of the map you can use to escape... at least, I remember reading that somewhere and don't know where to find it again. I'm guessing the AI chose 'Defending' (or possibly 'Attacking')?
So, yah, seems like the AI deploys, decides it wants to retreat, finds the nearest edge it can use to retreat, sees that it's already in a position to do so, and gets away immediately. I can see some possible fixes, but I'm guessing the best one would be that a ship has to be fully on the map before it can turn around and burn to safety.
EDIT: Found what I was thinking of
in the manual of all places. whodathunk. Not terribly important, especially seeing as Alex responded to your problem, but I'm including this anyway since I spent 30mins looking for it.
Goal: AttackThe fleet engages in an all-out attack. Penalty to starting fleet points to represent relative lack of organization. Retreating ships will move to the nearest edge of the map, and may be captured by the enemy after the battle if the battle is lost.
To win, the enemy fleet must be routed - this can either mean total destruction, or capturing all the objectives and then mopping up the enemy's deployed ships. Enemy ships will also retreat if damaged too badly.
Goal: DefendThe fleet is either holding ground or cautiously advancing on the enemy. Bonus to starting fleet points to reflect good organization. Retreating ships will move to the starting edge of the map, and are unlikely to be captured if the battle is lost, to represent an orderly retreat..
To win, the enemy fleet must be routed - this can either mean total destruction, or capturing all the objectives and then mopping up the enemy's deployed ships. Enemy ships will also retreat if damaged too badly.
Goal: EscapeThe fleet is trying to disengage from the enemy. Retreating ships will move to the enemy edge of the map, and will never be captured. Ships remaining in reserve will always be captured if the enemy has ships in play when the battle is over.
To win, at least 25% of the fleet must successfully retreat.