Based on the Bloody Knuckles Combo thread I wanted to start a discussion on the order that damage is dealt. I think arenson9 did a similar step by step, but I can't seem to find it. This is my understanding of how each instance of damage is dealt. Repeat these steps for each instance of damage.
1. Source is declared. As of right now there is nothing in the game that changes damage sources.
2. Initial target is declared.
3. Initial damage is declared. This is the actual number on the card. If it's an X the number is computed now.
4. Initial damage type is declared.
5. Damage type changes happen in the order that they entered play. Damage type is now set and cannot be changed even if redirected.
6. Damage type modifiers (increases and decreases) happen.
7. Universal modifiers happen.
8. Source modifiers happen (damage dealt). This is the amount that will be redirected in step 10.
9. Target modifiers happen (damage taken) in the order they entered play. These inclue both static modifiers like Armored Plating and triggered modifiers like Shielding Winds.
10. Redirection eligibility is checked. If the attack is redirected the new target is declared now. The source and type remain the same. Return to just before step 9 and continue with the damage amount from step 8. This means that target modifiers and triggered modifiers are removed. These are recomputed for the new target. Repeat steps 9 and 10 each time the attack is redirected.
11. The final target is now set. If the target is immune to all types or that type or if the source can't deal damage the attack is cancelled. No damage is dealt and no effects are triggered.
12. If the current damage amount is 0 or less the attack is cancelled.
13. Damage happens. Physically remove the HP from the final target.
14. If the final target has 0 or less HP destroy/incapacitate it and then effects triggered by destruction/incapacitation happen.
15. Effects triggered by damage happen.