"The limit is set much higher, and the closer you are to dying, the more damage is dealt to the opponent."
This can be misinterpreted. I have tested by getting nuked by 447 dmg and ending up below 100HP. And the DMG is still only proportional to the HP lost.
Code:
Base Rng.Dmg: 321
Indmg Outdmg Diff DmgUp% Diff% Diff%/InDmg
487 362 41 12.77 0.0841 0.0262
595 372 51 15.88 0.0857 0.0266
718 385 64 19.93 0.0891 0.0277
955 407 86 26.79 0.0900 0.0281
Base Rng.Dmg: 321, 1789 HP
Indmg Outdmg Diff DmgUp% %HPlost
447 359 38 11.8 24.986%
491 362 41 12.7 27.445%
Base Rng.Dmg: 321, 2053 HP
Indmg Outdmg Diff DmgUp% %HPlost
461 356 35 10.9 22.455%
613 365 44 13.7 29.858%
Base Rng.Dmg: 321, 1737 HP
Indmg Outdmg Diff DmgUp% %HPlost
447 359 38 11.83 25.73
718 385 64 19.94 41.34
955 407 86 26.79 54.98