So in the first scenario, a lot of retreating around the fjords happened. For infantry as assumed that if they had to retreat 2 spaces, the first was into the fjord (which forces them to stop) then the 2nd retreat would have to turn into a wound. Just made sense.

Then some calvary had to retreat across the fjord. Since the fjord knocks one off their movement, would that automatically convert one, but only one flag result into a hit?

Terrain Restrictions do not apply in Flag Retreats-but you still can't enter impassable terrain (so hits would apply in that case-otherwise you retreat )

OD