Memoir '44
What happens when a unit cannot retreat (blocked, board edge or sea)?
The rulebook says one figure is removed per retreat move that cannot be completed, and the publisher confirmed flags cannot be refused.
- Memoir '44 rulebook · Rulebook · Resolve Battle
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It loses one figure for every retreat move it cannot complete. This applies at the board edge, when both rear hexes are occupied by any unit, or when the way is impassable terrain such as ocean. You cannot choose to take a hit instead of retreating when a retreat is possible, though terrain or obstacles such as sandbags may let you ignore the first flag.