Established non native faction ejected from a system after lost war?

My curated faction expanded into another system and got engaged in a conflict with another non-native faction at 6,5%. Rivals were beaten and on next day my faction ended the day at 9% while defeated ones were at 2,5%. The day after defeated ones were EJECTED without any retreat cycle! Damn, but I don't remember anything like that in my several years of adventure with bgs.

I thought that only a lost invasion war would cause the attacking faction to leave the system the next day, and that this would not work for a defeated defender who came from outside the system and is already an established party in the system. Is that how it works, or am I missing something?
 
Yes, that's just how it works - an invasion war kicks out the loser, whether that was the faction expanding in, or the faction which is already there.

That's why you can only invade versus non-native (and nowadays, non-control) factions to start with.
 
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