The allied army retreated from the fallen imperial capital or rather what is left of them. Since the first assault against the imperial capital is broadcasted to the whole world, the dismay of the casual players who were stripped away of their homes inside the game magnified.
The large area of effect attack of the dark god is not the only thing that they learned. When the players revived after the death timer, some of the players immediately refused the second recruitment for the attack force. A terrifying system notification has discouraged the players who have a lot to lose.
[You have been killed by the attack of the Dark God Nyarlathotep. The dark god used a part of your soul to empower itself. If you get killed nine more times with your soul shredding by a dark god in a short span of time, then you will cease to exist.]