FAQ

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Shield is overloaded. What does that mean?
Overload happens when enemy energy weapon deals more damage than you have shield points remaining. So when enemy lasers deal 10 damage but you have 9 shield points, your shield module(s) will become overloaded for ~15 seconds.

While the shield module is overloaded, it does not regenerate any shieldpoints.

1) High anti-shield damage: look for what weapons enemy have. Some are EMP rays which are like lasers except they deal extra high damage to a shield. Several of cheap DIY EMP raygun shots can break even your strong shield; make sure to stop these weapons from firing by either damaging them or damaging enemy's reactors (energy weapons tend to consume fair amount of reactor's output). There is also specialized EMP nuke but that’s rare and you can spot them too (plus they can be intercepted with point-defences)

2) You losing some of shield due to having insufficient energy to support all of your shield batteries/generators. This may happen if you have just barely enough reactor power and then tried to install a new gun. The most common reason for shield depower, however, is taking damage to reactor, but this will NOT overload your shields, it will just turn the module without power off.