To say that the Shogunate Navy, much less the military as a whole, overestimated its capabilities was an understatement. Being bombarded in the middle night by both sides definitely gave a huge shock to the Yamato sailors and naval officers as their ships were being pounded like a fish in a barrel. After getting over their initial shock, the Admiral of the Yamato fleet quickly resumed focus and ordered a retreat, leaving a light cruiser and two destroyers sunk and all heavy cruisers badly needed of repair.
Meanwhile, the artificial tsunami pretty much forced the Yamato soldiers to give up their siege of the city to avoid heavy losses and instead adopted a land containment of the peninsula. They had to stay away from the coastline in case of another tsunami but the colonel deployed small bands of sharpshooters and snipers at the edges to pick off any Imperial squad that was brave enough to skirt around the coastline. The siege was over until further reinforcements arrived and that meant the two Legion Auxiliaries manage to disembark from the port city and be relocated elsewhere.
Yamato forces retreating to to higher after the tsunami flooded the area
However, the biggest insult the to injuries was that this entire ordeal could've been avoided. Due to the Mind alignment that was present in the vast majority of the mages and exorcists, the Shogunate Navy could've foresee the Imperial Navy hours before hand by deploying seagulls and other sea birds to scout for incoming ships.
When news of this attack reached the capital, a wave of embarrassment hit the newly formed General Staff. This was their first failure in organizing the expulsion of Yllendyr. Thankfully, Emperor Eikou was in a forgiving mood and ordered the General Staff to begin organizing mages to serve as military recon to prevent further blunders of attacking blindly. Given the Mind Alignment to see through the eyes of animals, it will be crucial to gain sight everywhere to track down the whereabouts of the Imperial Navy and the movement of the Imperial land forces.
The first ever mage-only recon squad was hastily assembled by nightfall and quickly sent to aid the cavalry brigades tasked with hunting down the bandits.
Elsewhere, starting from February 19th, the Yamato soldiers that weren't already engaged in subduing the remaining Imperial forces were transitioning from militia regiments into a proper infantry divisions. Armed with modern rifles, machine guns, and artillery, 6 infantry divisions were assembled out of the remnants of the Yamato conscripts of the defected Auxiliary legions in February 22nd. A further 18 more were upon near-completion by the end of February as those divisions were waiting for artillery shipments from the factories.
Shogunate's 1st (Jade) Division after reorganization is complete
Meanwhile, during the days of brutal close-quarter fighting in the cities and surrounding area, the attack Yamato soldiers were ordered to hold position in February 27th as Emperor Eikou wanted the remaining Imperial Auxiliaries to surrender. Leaflets made their way into Imperial positions offered amnesty to the Imperial Soldiers as well as free transport back to their respective countries. However, the leaflets said nothing about the Dark Elf Officers though it has been heavily implied that they would be taken as prisoners of war. The four Auxiliaries were given until tomorrow morning to give their response at 8:30 am before the Yamato resume their attacks.
Outside of the world, it was commonplace where Yamato conscripts that were stationed in foreign countries took matters into their own hands after reaching to the conclusion that they would probably never see home again and began murdering their Dark Elf commanding Officers ever since news of the Kitagawa's War of Independence was known. Few soloed their attempts by cutting the throats of the officers in their sleep during the dead of night, others strapped grenades to their bodies and burst into the rooms where the Imperial Officers were meeting before detonating themselves, and many Yamato conscripts banded together to simply ambush the Dark Elf Officers with their pistols and rifles as they shot them from the bushes, trees, and even from behind.
Just as these attempts would fail, others would also succeed before being executed for treason. But before they carried out these kamikaze missions, the Yamato conscripts told their comrades, the ones that were trusted enough to not rat them out, to desert and make their way back to their own nations for freedom. The Yamato conscripts that didn't rebel would soon feel the heat of the Imperial retribution.
Of course, the Yamato conscripts were also equally killed in foreign nations despite trying to surrender to the rebelling nations.
The Olarth Question
The reason for the small ceasefire was that when the Shogunate government and Emperor Eikou heard of Emperor Olarth's message of granting independence on the same day it was announced. As to be expected, the government was was very skeptical of his offer. No one could completely know or trust Olarth enough that he would fulfill his promise. To be fair, the Kitagawa Shogunate would be fighting the Imperial regardless if they sided with Olarth or not.
Finally, on February 28th, Emperor Eikou took the gamble after much discussion with the government and sent a encrypted telegram to Olarth stating that the Kitagawa Shogunate would back Olarth's claim to the throne. An hour later, encrypted telegrams were sent to the Fibor Dynasty and to the Tokushima Daimyo requesting them to back Olarth's claim to the throne. The messages went on to great lengths talking about the grievances all three countries shared under the rule of the previous Emperor and that Ecurir will simply exacerbate the unfair treatment of the previous status quo.
20 minutes to sunset, Emperor Eikou officially announced to the Shogunate that they would support Olarth in his war for the throne in return for self-determination and he called that "all nations to thrown off the chains of Tyranny" and "Support Olarth in return for autonomy and self-governance". This announcement was purposefully broadcasted to the Fibor Dynasty and Tokushima as well as the other neutral nations still on the fence in hopes of swaying them against the Emperor Ecurir. Even the loyalist nations had access to this broadcast. All except Ecurir's side of the Imperium. Emperor Eikou went on and further declared that if the nations wanted "the respect and goodwill it deserves..." and that "Ecurir is the leech that would further deteriorate the already low integrity the Imperium has for its subject nations."
Going further, Shogun Emperor concluded his world address by speaking to the nations loyal to Ecurir: "I say this to you, the nations who declared for Ecurir, what has he done that deserves your loyalty? What did he offer that is superior to greater autonomy and self-rule? Do you even trust that his rulership will be just, fair, and not corrupt with arbitrary judgement and wanton reparations? Even you if you support Ecurir in the beginning, what would he do to the defeated nations? Simply, he will carve them up and cast their flesh for his minions to eat. Ecurir is using you for his own gains. Olarth promised change, change that will grant greater freedom to all nations even the ones that wish to remain to the Imperium. I'm not asking the nations loyal to the Imperium to secede, no, I'm asking you take this chance to achieve better representation in the Imperium. Please, I request that your nation's leaders to reconsider the backing of Ecurir's throne and join forces together to secure Olarth's rule for the chance for all nations to live proudly as lions rather than to survive like vultures."