To put in context Legacy was lowest HP in that game both of those cards were played. The loop is defenitly not infinite since Lead from the front has the word may on it. The point that got us wondering when Legacy would have been dealt damage it was redirected to target with Highest HP, but can he redirect those damage back to himself with lead from the front to activate the smoke bombs damage reduction? If so does it mean that this combo allows to disregard any villain damage that is not irreducible because Legacy takes it on himself and Wraith takes it away with smoke bombs and vice versa until Legacy relents on the may because there is no damage left?
Redirection recalculates all the damage reductions, meaning smoke bombs can't stack the -1 damage. If the target takes damage due to smoke bombs it is -1, if they don't that -1 never applies