Ugh! Loser playing negotiate met with defense negotiate!?

[Marximus 0]

Now my head is starting to hurt...

Loser uses its power but has no attack cards and plays a negotiate card instead.  Defense likewise has no attack cards and plays a negotiate card.  The rules require that the players "deal."  However, if no deal is reached, is the Loser's power of no effect (each side simply loses 3 ships to warp)?

[Jon Gon 0]

You must apply the normal rules of a deal. The Loser’s power doesn’t affect deals.

[Marximus 0]

Thought so; thanks again!