As I said in the chat, it would appear I was imagining things. I can't replicate this behaviour in the tests I just ran, so perhaps this is the case.
Peculiarly...
[State -2, LifeSet]
type = LifeSet
trigger1 = Life <= 1
value = 1
ignorehitpause = 1
[State -2, AssertSpecial]
type = AssertSpecial
trigger1 = enemy,life > 0
flag = noko
ignorehitpause = 1
If the opponent dealt the finishing blow, then obviously my character'd still be alive, but then logically if my character KOs the opponent, they'd both get KO'd, right? Except the fact that my character didn't get KO'd, only the opponent did.
Similarly...
[State -2, LifeSet]
type = LifeSet
trigger1 = Life <= 1
value = lifemax
ignorehitpause = 1
[State -2, AssertSpecial]
type = AssertSpecial
trigger1 = life < lifemax
flag = noko
ignorehitpause = 1
Upon fully restoring its Life, my character should've been KO'd, right? Except it wasn't.
[State -2, LifeAdd]
type = LifeAdd
trigger1 = var(40) = 1
value = 20
ignorehitpause = 1
[State -2, AssertSpecial]
type = AssertSpecial
trigger1 = var(40) < 2
trigger1 = enemy,life > 0
flag = noko
ignorehitpause = 1
[State -2, VarSet]
type = VarSet
trigger1 = life < 1 && var(40) = 0
var(40) = 1
[State -2, VarSet]
type = VarSet
trigger1 = life = 1000 && var(40) = 1
var(40) = 2
Using this code, my character will simply restore my Life when it reaches 0 and then not get KO'd, but the opponent can still be KO'd as normal. Upon fully restoring its Life, my character can then be KO'd as normal.
How strange.