The Laine People retreated, and they did so in a rather disheveled manner.
When Amberser launched a Starburst, they still maintained their original formation, and their morale wasn't much affected. But after the Silvermoon Knight collapsed spewing blood, the entire army panicked and there was a sense of frantic escape in their retreat.
If Amberser were the commander, he would have definitely ordered a pursuit, for not taking this opportunity to teach Laine a profound lesson would be a huge loss.
However, after the Laine People retreated, Hoffman merely let out a deep sigh of relief, showing no interest in chasing after them.
In reality, throughout the entire battle, Hoffman had not appeared at the front lines, and only began to direct the cleanup of the battlefield after confirming that the Laine People had retreated.
A bit of bereavement money was handed out idly, and then Hoffman busied himself with cleaning up whatever the Laine People had left behind.