The year 1940 saw the collapse of Carol II's regime. The unexpected cession of Bessarabia to the Soviets shocked Romanian society and greatly angered Iorga. At the two sessions of the Crown Council held on 27 June, he was one of six (out of 21) members to reject the Soviet ultimatum demanding Bessarabia's handover, instead calling vehemently for armed resistance. Later, the Nazi-mediated Second Vienna Award made Northern Transylvania a part of Hungary. This loss sparked a political and moral crisis, eventually leading to the establishment of a National Legionary State with Ion Antonescu as "Conducător" and the Iron Guard as a governing political force. In the wake of this reshuffling, Iorga decided to close down his , explaining: "When a defeat is registered, the flag is not surrendered, but its fabric is wrapped around the heart. The heart of our struggle was the national cultural idea." Perceived as Codreanu's murderer, he received renewed threats from the Iron Guard, including hate mail, attacks in the movement's press ("Buna Vestire" and "Porunca Vremii") and tirades from the Guardist section in Vălenii. He further antagonized the new government by stating his attachment to the abdicated royal.