I was posessing my familliar and it received one damage over its HP. Instead of dying though, it just fell down at -1. I then unposessed it and walked around for a few seconds before unsummoning it.

Was the familiar attacked by somebody on subdual mode?

I'd like to see this repeated in-game, actually, to see if it fires certain warning messages that are now in our death scripts.

Alright, you can chat me up sometime on IRC and we can try and duplicate it. Kinda feels like a feature to me though.

Happened to me too, familiar was attacked and killed by rats while I was posessing it. It went down to -1 and stabilized.

Our bleeding scripts were being applied to possessed familiars. Although it would be nifty for this to work all the time, that isn't viable. Given the choice between it happening inconsistently and it never happening, the second is the better option of the two.

There are also some exploits that this made possible.

Fixed.