Oh yes, he did blob, but look at the second picture, he had another 2 riflemen on the eastern flank moving up. Yes that is right, 2 more rifle squads 
If you have 7 squads of infantry and he has only 5 squads of rifles/LT +1RE and you have 7 squads you should be able to win some fights if he splits up like that. Focus more on one side of the map and keeping your units concentrated if you are only holding a small area. spread out when you are winning
Your are also floating enough manpower which could be another squad fighting for you in both pictures
You should also try to engage that 50 cal which isn't shooting anything in the second picture, if you concentrate your forces and use it to support it should be easy to slow down his blob.
Finally but most importantly why do you not veto this map? It's bad for axis with two fuels that are hard to hold. The fact that
you made the decision not to veto this map is probably the biggest reason it is easier for him to win.