From Secrets of the Wing Commander Universe by Mark Minasi:
'Meanwhile, the Tiger's Claw moves into Enigma, looking to find-and destroy- K'tithrak Mang. While on a patrol, you meet the new stealth fighters. You find that the ships are fairly easy to destroy, once you've locked onto them, but their appearing and disappearing makes destroying them slow going. Chasing them lures you away from the Claw for just a bit too long ... and when you return to your carrier, you see nothing but the debris of your old ship--the Kilrathi destroyed it.
Landing on another carrier, the Austin, you are thrown into the brig and charged with desertion. Your protests that you were distracted by a new 'stealth' fighter ship are met by jeers and derision. "Check my flight logs," you say. "We did," reply the investigators. "The logs are mysteriously--and conveniently--damaged."
While the damaged logs can't testify in your favour, they can't testify against you either, and so there isn't enough evidence to hang you with. Admiral Tolwyn does the next best thing to a hanging, however: He busts you down to Captain, and sends you to Gynnen Station, a quiet communications relay station in an adjoining system. You'll probably never fly a fighter again. Embittered, you take your new post, vowing to restore your standing in the military."
I dunno how official this book is, but thats what it says about Blair at that point. I couldnt find my copy of the WC1/2 Guide so that'll do for now I guess.