Probably you time time warped while the ship was some cms over Gilly's floor, causing it to "crash" and destroying it. If you have time try taking your turn again, if you have a lot of stuffs to do, i'm ok with a dead ship, after to all your corvettes have enough ammo to destroy it. If you decide to retake your turn and the kraken eat my ship again, just fly it into a low orbit and shoot it dead I want to see if the pilot survives this time too