Instigator .vs. obstacle and engagement

By mikemcmann, in Star Wars: Armada Rules Questions

Scenario: Instigator within one of squadron. Squadron is completely obscured by the obstacle (e.g. Inside a debris field)

Result one: Squadron is engaged due to the text on instigator which does not speak about nominal engagement rules

Result two: Squadron is not engaged because the phantom squadrons somehow follow other normal engagement rules

In a game last night, we both eventually leaned toward result one, the squadron is engaged regardless of the obscuring. Reasoning, there is actually no squadron to "measure" los from to determine actual obscuring.

Thoughts?

"Enemy Squadrons at Distance 1 are treated as being engaged by Two additional squadrons, even if they are not currently engaged."

Is the Squadron at Distance 1? Check.

Is the Enemy Squadron currently Engaged? Doesn't Matter. Check.

I would say, straight up, based on Card Text, that those Squadrons are Engaged .

However, as per the previous FAQs in regards to Engagement by Instigator - they're free to Shoot at whoever they want. Just not move away.