First of all: the game is great

It is not mentioned in the rules but what happens when a unit that is still active (i.e flag shows colour of current round)

is attacked and forced to retreat ??

I understand that the flag is not flipped to the other side which as a comsequence means the retreating unit can be ordered

in the same round to move and attack without having to be rallied before.

Is that correct ?

That is most certainly correct.

And most certainly kind of silly.

its all part of the the Problems with the routing/fleeing mechanic . making retreated units turn their flag is pretty much the one suggestion most people agree with in that thread (including badalchemist and I ).

Marduk said:

Haha, I had to add the "most certainly" because my original post was just going to be "Correct", but that was too short. Then, "That is correct" was also too short...

Perhaps they are simply performing a strategic withdraw. There is nothing wrong with hit and run tactics.

yes indeed its a good strategy but arguable too easy to implement in BoW through retreating at no cost whatsoever. If you wanted to hit and run while engaged you'd have to spend an action AND suffer a parting blow AND spend a flag token to reactivate the unit AND reorder it somehow (theres the cost for intentional hit and run). If flags WERE turned after retreat, you could still use a flag counter to reactivate the unit to attack again. That is still hit and run - just a little more (realistically) costly to pull off.