Happy with the War

So, an expansion faction enters a system, gets into a war with a local faction, the local faction is losing, yet on the local news (galnet panel) the local faction reports the following:


Current happiness : Happy


I suspect not.

And, while writing, why doesn't that local news feed even mention the war? Pre 3.3 it did. Either against the factions' names, or an extra piece of local news "steer clear of [xxx] starport, war's broken out, which way will it end?"
 
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