On turn 173, I received a message that Kraxis had captured my capitol. There was no battle for the city, and I had not observed any Kraxis units near it, although there were several syndicate units nearby. Immediately after that message, without control returning to me, I got another message that Altar had captured the Kraxis city of Athica, which was the capitol that had just been captured by Kraxis. Again, no battle for the city.
The first thing I noticed was that all enchantments on the city had been dispelled, and the improvement it was building had been cancelled. After rectifying that, I noticed a more severe problem - none of my units could move even though they had movement points left, and the turn button would not advance the turn. I could still scroll around the map, change city build queues, etc, but could not move any units or go to the next turn.
I'd supply a saved game, except that loading the game saved from that point doesn't show the problem - I can now move units and continue the game. I still have the saved game in case it would be of use.