This is actually false. What is happening is that when the damage reduction happens, it is possible for some to bleed through the shield. When I say some, I am talking less than 1.
The problem is that the client inspects the damage and sees that it did any damage to health at all so it thinks the entire 25dmg or whatever was applied to the health so it decides to not display any of the shield effects.
Again, in reality, most if the damage went to the shield with only fractions of a health point deducted from health.
Still a bad bug since it confuses people but it's not really as bad as this post makes it out to be
Of course I did the dumb internet thing where I didn't watch the video and made a comment. Ok now that I've watched the video 😥
It does look like the bleed through can instantly kill you. I've seen this bug before in testing and we've fixed it but it looks like the fractional bleed through is triggering it again.
This is worse than I originally described it for sure so I apologise about that. Either way, we should definitely fix it soon