RE: FLAGS
No they don't.....they only see the effect on flags based on what they are aware of.
For example, if you have a platoon of hidden troops around a flag which is thoroughly yours, your opponent might well think the flag is his based on his platoon of infantry advancing across open ground and getting close to the flag. Notwithstanding that next turn you're going to open up and massacre him, at that point all his side can see is an unattended flag with his troops nearby....so shows the flag as being in his possession.
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