Does Counter-strike work against combat damage, and if so, does it cancel all damage dealt to the unit, allowing a defender to survive and recall surviving attackers?

Ruling: Counter-strike works against combat damage and cancels all damage dealt to the unit, allowing the defender to survive and surviving attackers to be recalled.

Sequence:

• All combat damage is dealt simultaneously
• Counter-strike cancels the damage to the defending unit
• The defending unit survives
• Surviving attackers get recalled