Various situations can cause overlapping FTL ranges which cause them to partially disappear. Two confirmed cases of this are when a system contains two wormhole stations or if two different allied fleets are in the same system with the same range.
In this screenshot, my wormhole station system in the top left section of my empire has two stations. You can see that at the boundary of its range the indicator returns to normal.
In this screenshot, my wormhole station system in the top left section of my empire has two stations. You can see that at the boundary of its range the indicator returns to normal.
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