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It's not easy to lose a case by default for failing to comply with discovery. You have to really work hard for the court to basically say "your conduct is so bad that you've forfeited your right to continue making a defense". But due process is still a process, and if you straight up refuse to fulfill your end of the process, and turn down the many chances to comply with discovery that the judge will give you, then this happens. Alex Jones went down for the same thing in his defamation case. These turds all think they can just buck every system or break any norm that suits them, which is why they always go down for the dumbest simplest shit in these cases like perjury, discovery, and witness tampering.
I don’t think they think they can get away with it. They know that turning over the evidence would be more damaging to them than losing the case.
Yes, if you are certain that complying with discovery is going to expose more crimes and get you and your seditious buddies in more hot water, a good soldier like Giuliani will take the L of a default judgement, simply because he's more afraid of what his "friends" will do to him than what the justice system will do to him.
It's the one problem with denying reality. Reality doesn't care. I just didn't expect the US legal system to be the place where the rubber met the road. Honestly I thought it would take physical violence, unfortunately. Although our legal system ain't perfect, it's a pleasant surprise.