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One of the most vivid examples of this to come to mind would be the time my Wight Cavalry charged a big unit of Saurus lead by a Slaan.

The Wights killed a bunch of Saurus, the Saurus and Slaan failed to do any decent damage, losing the combat. I killed so many I now outnumbered them. They auto-failed their test because they were beaten by an outnumbering fear causing enemy.

They fled. My wights ran then down and killed them all.

The units to either side took Ld tests for having a friendly unit flee by them. They failed. This cascaded across his whole army.