Alright I finished testing and checking it out and concluded there is no bug with the Mage or elves.
What happened to Haybol was he didn't do enough ranged damage to take out the Mages, which survived and ended up wrecking him in Melee.
At Range both sides took heavy damages, 10k attack for the defender and 4k attack power from Haybol. The long range volley back and forth wiped out about 95% of the elf's regular units, but they had just enough fodder to protect most of their valuable Mages during this crucial phase where Mages are vulnerable.
In the short range Haybol output a modest amount of damage of around 90 units. It was just enough to clean up the remaining units of the elf so that all that remained of their army was the surviving Mages.
Next we get to the melee, and this is where it got confusing because I saw 0 losses for the defender here. I hadn't noticed the Elf's entire army had been obliterated - other than their Mages which were now free to bend Hybol over for a trip to pound town. And they did take him to pound town, as Hybol output an awesome 8k of attack power which was completely ignored by the Mages who output almost 4k attack of their own and finished wiping the floor of the orcs.
Ultimately the Elf lost about 60% of their army, while Hybol lost 97%, winner is the Elf.
This was really a perfect showcase of how an Elf can beat a numerically superior force, leaning on cunning use of the Mage to bypass 8k attack points of damages and come out the other side victorious.
