RE: Two fleeing questions
First question: one hex. See 12.13 and 14.35.
12.13 Morale Restrictions
Disrupted units may NOT enter hexes containing enemy combat units, but may assault enemy units already present in the hex they occupy. Demoralized units may NOT enter an assault hex or assault units already present in a hex they occupy. They may defend against assaulting units at one-quarter of their normal direct fire strength. If demoralized units start their activation in an assault hex, they must try to recover morale. If they fail they must exit the hex (moving only one hex rather than their maximum movement rate), and may suffer a "free shot" from the enemy units there if no friendly units remain in the hex when they leave (12.12). If all adjacent hexes contain enemy units (other than unarmed, empty transports and leaders), the demoralized units are eliminated.
14.35
Demoralized units in an assault hex that fail a morale check must exit the hex, and may move only one hex when doing so (12.13). On later activations they flee at their full movement rate if they fail to recover.
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Second question: The rules says it is a safe hex (1.2 definitions) and that the units does not flee (14.32).
1.2 Definitions
Safe Hex: A town, woods or other hex where a unit cannot be spotted and/or fired on by enemy units with Direct or Anti-Tank Fire (whichever fire type could hurt it), nor can it be assaulted by enemy units. Demoralized units which fail to recover morale must flee toward the closest safe hex (14.31), or remain in the safe hex if they start their activation there (14.32).
14.32 Going to Ground
Once a fleeing demoralized unit reaches a safe hex, it must stop moving and remain in the safe hex until it recovers. If enemy units move so that they can spot the demoralized unit and hit it with Anti-Tank or Direct Fire that could hurt it, and if the unit fails to recover when activated, then it must flee again to a new safe hex.
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