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Could the American Confederacy have continued to fight a guerilla campaign after their regular forces were defeated? Despite how this looks, it works out much worse for the Confederacy than OTL

Got an idea for a timeline where this causes extensive damage to the Confederacy. They keep fighting until Confederate land is so badly damaged and the cost of the war so high that the Union pulls out. The Confederacy never recovers from this and collapses into a failed state in the same vein as OTL Somalia. The area becomes a blight on the North American continent and becomes the source of swarms of refugees and is the source of multiple epidemics. This is due to the lack of health care and squalid conditions in the former Confederacy.

The area is overrun by bandit gangs, pirates and violent Christian extremist groups.
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