Disappearing worlds?

For some reason, when a civ surrenders, or in any way loses during a game, their entire empire except for their original homeworld vanishes. entire star systems with habital planets just poof... gone anyone have this happen to them? is it a bug? or some feature i am unaware i have set on by accident?

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It depends on the setting you set at game creation in the advanced settings I would say: Surrendered Colonies, Colonies transfer ownership upon surrender.