There are two ways to analyse what happens to the orbit of a satellite when its orbital velocity is suddenly reduced (halved).
By considering the energy, when the velocity is halved, kinetic energy is quartered, so we have \begin{equation} KE_{new}=\dfrac{1}{4}KE_{old}=\dfrac{1}{4}\cdot\dfrac{GMm}{2r}=\dfrac{GMm}{2(4r)}\implies r_{new}=4r_{old} \end{equation} So the radius doubles. However this doesn't fit with intuition, as decreases in velocity results in orbital decay, which decreases the radius of orbit. Obviously from the calculation we have increase in radius. What mistakes did I make two produce these two faulty results?
P.S. After some research, it seems like I have to consider the total energy instead. So the question now becomes, why is it wrong to consider the kinetic energy alone?