There are some moments that monsters are way to strong to be defeated the first time. After a defeat, you will be taken to a screen that some of you do not see or get the point with. The screen turns black, but a soft image will come visible with Squall's gunblade lying on the ground, broken through the blade. The point of the blade has been boarded through the earth.

This situates that Squall has lost the fight and has been killed dramatically. In between the two Gunblade pieces lies a feather, meaning that Rinoa did not survive aswell.

What I am insinuating is that Squall could not protect his love if you are at the ending of the game, at the beginning of the game it tells you that Squall and Rinoa are becoming one eventually and even though the screen image might seem painful to view, but I think it is one of the special game over screen then that of the other games.