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Situation:

France(AI) is at war with RS, GB, PR, has Sweden as Free State and a few minors in Italy
Britain(Player) has 2 fleets (1 Heavy 1 Lt) blockading the Swedes in Stockholm (blockade box).
Russia Also has a fleet blocading Stockholm (blockade box).
January 07 Russia(AI) (in a monumental brain fart) DoWs on GB (why he'd do this rather than take French controlled Sweden is beyond me.. but I digress)
January 07 Naval Phase - Britain moves 2 additional Heavy fleets (35 SoL) into the blockade box (to crush the Russians [:D])
- I cliked on Stockholm with the 2 phasing fleets. I get a pop up that says "break the blockade?"
- Now I assumed that both RS and BS fleets in the BB made the whole situation where RS had a valid blockade AND GB had a valid blockade - thus I would in effect be breaking the Russian blockade.
- the Result - The British Phsing fleets attacked the Blockading British fleet - hilarity ensued.. and probably a few dozen court martials.
- Even funnier.. since Britian both won and lost the battle gained 2x the PP BUT had to retreat both fleets..

(see capture below)

Although this sounds quite funny, and is obviously a game bug, there is a case of this actually happening in Spain, around the mid 1700s.  I'll have to go dig up my military history books to find the details.

Of course there was also the battle where the English attacked the Spanish off the coast of Cadiz (IIRC) in a relativley dense fog, and two of the Spanish ships of the line began firing on each other because each thought the other was a British ship.  Well known, I think one of those age of sail board games has a scenario covering that battle, again I can't remember the exact details but it's well known enough so that someone here will be able to help out I'm sure.

Del

We did find some naval combat "undocumented features" that would allow a side to fight itself. This should be fixed in the first patch.