Stating that the exiles went on as if nothing happened was an assuption on my part based on the scene when I got back into game (a bunch of dead bodies, Qs with immunity ticking down, and exiles standing around covered in blood). So based on your information, I stand corrected.
My question remains though, why does this happen?
I do not buy the charm explanation, or the laggy zone explaination. First, I was solo, and I crashed to desktop upon attacking. I wasn't involved in any charming of anyone, I wasn't targeted by any exiles (as far as I could tell) and I didn't have any group member's buffs on me. At the word "go" I threw one shurkin, and crashed to desktop.
I still wonder whether something is awry with game mechanics which arise when exiles lock horns with city members.