This reports concerns a loss of HUMINT source following a reconnaissance in force mission conduct by a senior [#OSS] pilot yesterday on or about 1900 CST in the Sedina system, sector D-8. Acting on reliable intelligence of location for the pilot responsible for the destruction of the HMS Indefatigable, our pilot conducted a reconnaissance of said sector in a Ragnarok III missile boat. No sensor contacts were reported, even after a random deep exploration of the sector in the ten directions. Following the pilots debrief, the HUMINT again positively confirmed the reported position.

This morning our HUMINT source was reported compromised, preventing any further exploitation of the intelligence. Senior analysts surmise three possibilities: 1) the reconnaissance mission was not detected as the mission itself could not report a reciprocal contact and the loss of our HUMINT may have been the result of happenstance; 2) an operational security breach in our organization, unlikely as only the pilot, myself, Commander Cincinnatus, and one trusted ally knew of the source; 3) [ITAN] pilots employed a yet unknown technology or programming modification to foil our sensors, detected the reconnaissance in force, and conducted a review to determine potential security review.

Operation Slow Burn continues, although at a drastically reduced operational tempo. This in due in part to negative feedback from other clients of the manufacturing stations, citing concerning disruptions and general unease at continuous hostilities.