I found out by accident earlier today -
If you forfeit prior to losing the battle completely, then your characters are restored to the state they were in prior to you starting that mission. Which is quite handy if you get screwed over by an unlucky hit or a badly timed miss.
That said, I find it frustrating that almost every single match is at least lvl 40s across the board. Means anyone lower than that is going to be basically cannon fodder.
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