The Loser wild flare lets the player declare that both sides lose the encounter. The actual text is:
As a main player, before encounter cards are selected, you may declare that both sides lose, sending all involved ships to the warp.
I am not clear on how exactly to resolve this. The loser flare must be played before encounter cards are played, but it doesn't explicitly state that encounter cards don't get played even though the outcome is already determined. Should the main players still play their encounter cards? This could matter for example for the Oracle super flare:
As a main player, you may end an encounter after your opponent reveals his or her card. Your opponent takes back his or her card, all ships in the gate return to colonies, and play continues as if a deal had been made.
or perhaps for the Vacuum wild flare:
For each main player other than you who reveals an attack card, you may retrieve one ship from the warp.
and the Chosen super flare:
You may keep any non-encounter cards drawn from the deck while drawing for divine intervention.
If cards don't get played, is there still a Reveal phase? I haven't read every card in detail so it's possible that this actually doesn't matter, but I would still like to know.