Vacate the area very quickly, "lose" the logbook pages, and swear your officers to secrecy. 
"Honest Admiral. We were not even in the vicinity. The ships must have run into an uncharted minefield." 
I've come close to sinking a friendly around the same time. A German ore carrier came within seconds of having eels launched before I identified the flag in the dark.
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“Prejudice is blind. There will always be someone who says you aren’t welcome at the table. Stop apologizing for who you are and using all your energy trying to change their minds. Yes, you will lose friends, maybe even family. But you will gain your self-respect. You will know your worth. Once you have that, nothing can stop you.”
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