AFAIK, that's not planned. The Orc has a slight variation in dialogue, though, openly saying that you're a slut losing on purpose, after your 3rd defeat, I think.
I don't think they want bad ends. A core design concept (and a good & appropriate one, imho) of the game is that losing simply sets you back a bit, and accelerates your corruption.
The only bad end, I think, happens if you let control drop to zero, in which case you are demoted from your rank because of your inability to manage the prison, and game ends.