The debriefing indicates that Sawaiiki is critical of the Federation's hubris and seriously reconsidering joining the Federation, doubly so as the CIF spared their personnel and installations. Sawaiki was considering joining the Federation and offered their own military forces to help protect Task Force 1, only to be rebuffed by the Feds.
In response, many of them defected and provided the Independence Forces with man power and intelligence, allowing Cascadia to secure even more victories. In an effort to increase combat effectiveness the Federation started to replace Cascadian manned units with ones that werent nationals.Before the mission even begins, on Mercenary Mode, the Game itself makes a grand Anime title screen instead of the usual mission start, just to highlight how epic the showdown will be.
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Thanks to the destruction of the Solona Communications Array, the Federation became disorganized, and had become subjugated by Cascadias own electronic warfare, granting them several true victories in the war, forcing the Federation into a full retreat.