You should start getting a few resources that explicitly target the Faded. Outside of those, Dispatcher, Quarantine Specialist, and Operations Expert all have potentially useful abilities for quarantining Faded cities and extracting people. Note that you're only penalized if you START your turn with a Faded figure, so Dispatcher is capable of performing emergency extractions. The Military Pressure upgrade is also potentially very helpful.

All that said, pretty much every campaign should expect all the CoDA cities to become Faded pretty quickly, and panic level in those cities is likely to look bad in every campaign. You lost, but it doesn't sound like the board state is irreparably damaged.