This isn't anything big but losing diplomatically the picture shown for military loss just doesn't work for Diplomatic loss.  I mean th idea that you I was given that they become domanated threw diplomatic means. I don't see the cities being deserted if your allie becomes of the system.  Or the Varsari's allies become domanate I don't think they would shoot down there escapng ships.  Or if the Advent still have there empire in the system but there allies are domanate I don't think they would put brain mufflers.  It just doesn't make any sense the pictures you have for losing Diplomatically.