Angor wrote:
Although it cannot flee after the engagement. Maybe we played the rule wrong but the pylon took one point of actual damage from the termies. It lost and then because it could not get out of 5cm it took 1 extra point of damage for each unit within that range... So 4.
You played it wrong.
If a Fearless model moves, it must move more than 5m from an enemy, or take damage as described. But it's not required to move.
EA Official Errata for 2.1.3 wrote:
When broken or otherwise forced to take a withdrawal move, Fearless units may choose not to withdraw. Fearless units that remain stationary do not take additional damage. If the unit elects to withdraw it will take damage only if it ends its move within 5cm of the enemy rather than 15cm.
Morgan Vening