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When it happened to me I had all my teams out with noone spare at HQ. The mission will not let you pull another team off their infiltration and it won't let you even have 20 seconds to go to the globe map and abort one. I have never seen the results of a lost defence and it won't even give me the chance to find out as it won'y leave the Squad Se;ection screen. So unless someone has a bright idea...thats the end of my Vet/Ironman campaign.

Figured the way around it. You have to force the game to close and then restart. The save is moments before the defence mission and that gives you a little while to pull a team or two out of infil and make a team just for the defence.