I'm also having a hard time understanding what you're saying. You say that they do retreat when they have fighter squadrons, but do not retreat after they loose their fighter squadrons?
Yes, lot's of people telling me that
So after i load lose, load lose, load lose i decide to give auto resolve a try. It was win but all green ones retreated (in after battle screen below all 3 was RETREATED). Some was damaged. I auto resolve again because they still wanna fight me. I win again, green ones retreated again but this time they where damage more (damage from first fight and damage from second fight) and they still wanted to fight so i auto resolve for tird time and they end up with 2 destroyed squadrons and third didn't want to fight me any more.
And then, in spoils of war, i see that little green thingy big as and and strong as WHALE!
I sold it, it was way to much firepower in such small thing... You know... I think... I ... want it back... my precious...