In that instance Pulse had been up by nearly 100k acres earlier in the war. We turned things around after some strategic changes, and started regaining. Pulse was smart to withdraw when they did (we had no intention of surrendering), but even smarter would have been to withdraw sooner. This again confirms what a huge advantage losing a war gives, since there is essentially no penalty for withdrawing and you get to choose your moment. If pulse hadn't lost that war they would not have crowned.