WI: An Even More Catastrophic Outcome for the Armada

A lot of what if's about the Spanish Armada center around a successful invasion if the fleet had just successfully linked up with Parma's army.

But what if the English fail to prevent the Armada from connecting with the Duke's army only to score an even more spectacular (Anglo-Dutch?) victory destroying not only the bulk of the Spanish fleet but also sinking many of the barges containing the Duke's troops? In the battle, the Duke himself is killed.

The Armada limps back to Spain with even fewer ships and men and the near total loss of their expeditionary force.

1) Is this totally ASB? If not, what's a good POD to make this outcome happen?
2) What are the consequences of this? How does it affect the Dutch Revolt? The Anglo-Spanish War? French Wars of Religion? Or does this very quickly move back to the same as OTL?
 
Well, Parma would OTL use that army to launch a reconquest attempt that pushed the Dutch down to this:



Now, if we assume that this army is essentially unavailable, that the Spanish bankruptcies are coming earlier and the armies are mutinying more, perhaps the Dutch are able to retake Antwerp?
 
Well, Parma would OTL use that army to launch a reconquest attempt that pushed the Dutch down to this:



Now, if we assume that this army is essentially unavailable, that the Spanish bankruptcies are coming earlier and the armies are mutinying more, perhaps the Dutch are able to retake Antwerp?
Bad news for Amsterdam then...

So based on the size of the Spanish Army of Flanders around 1588, about 63,000, the expeditionary force might have been as much as 30,000. I doubt the entire force would be lost, so maybe the Army of Flanders is reduced to 45,000 or so. That still greatly outnumbers the Dutch forces at that point.

But the defeat would likely change that even further with recruitment and financing for the Dutch Army jumping rather rapidly (OTL they were up to 62,000 by 1607 anyway). The Spanish meanwhile would be facing even more financial instability and dissatisfaction from troops under their command.

If they can make an offensive by the early 1590's, would the Dutch still want to make the effort to retake Antwerp and is it likely the people who left after 1585 would return?
 
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