That suggests Lithuania stacked up a large number of loans to fight against an alliance where victory was unlikely. The functional difference between getting wiped after 50-100 loans or no loans is nothing, if you have nothing in the end in both cases, except that the loans in that situation were a misplay.
Lithuania made a bad judgment call and paid dearly for it in the literal sense.
Noteworthy is that giving up war score lowers war exhaustion (by 20 at 100% war score taken) even right now. So yes, Lith got camped, but bankruptcy is absolutely not something that alliance could possibly have forced absent a significant misplay. They could have camped until rebels came out, but that can take a long time and if they don't avoid call for peace, prohibitively long. 100% occupation doesn't cut the mustard in that scenario; you need to do something like pick a conquest CB, avoid the war goal, and avoid too many forts...but if you do that then your opponent necessarily will still have some income.
This wasn't some strict "exploit" situation. The defender choked badly, even with diplomacy considerations set aside.
I think the correct response to this is: "And?"
Misplays are not the issue. The issue is that this happened, and Lithuania had no recourse whatsoever to be able to continue playing the game.
I didn't watch the stream, but I've been following the discussion a bit and it seems to me the problem people have had with the Ottoman's actions here has less to do with the fact that this was an attempt to use game mechanics to inflict the most damage on a potential threat and more the fact that Lithuania could do literally nothing. If mechanics had explicitly existed that allowed the Ottomans to inflict the exact same amount of damage on Lithuania without the Ottomans refusing to even consider a peace offer, this would not have been an issue. The problem people have is with the fact that Lithuania knew this was a war they had lost, but they had nothing they could do - not even unconditionally surrender - to end the war.
Framed this way, we completely avoid any discussion about whether or not this is an exploit or about how much damage it should be possible to inflict on large countries or whether this is only something that helps the player at the expense of the AI. Instead, we simply focus on discussions of player agency. And correct me if I'm wrong, but from discussions I've had with you in the past you've stated that you dislike playing monarchies precisely because you feel regencies and random ruler stats detract from player agency.
I don't think you can remain consistent with that position if you're going to continue arguing against people saying that there should be an option to unconditionally surrender. I can think of no possible situation where unconditional surrender is exploitable for a defender. If you really want to insist that this would somehow protect large nations more, simply make unconditional surrender additionally decrease warscore costs of peace deals so you can demand more than in a normal peace deal.
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