The dmg that warlock takes from Blood Treant is not discounting to cost of imprisoned horror.
You don’t take damage when playing the treant. You are using your life like mana crystals. This is not considered as taking damage.
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Paying health and taking damage are different things in hearthstone. Paying a health cost to play a card is treated differently than taking damage due to the cards effect when it’s played; and won’t trigger effects like Imprisoned Horror.
[Hearthstone] Cards that cost Health (or Armor) instead of Mana no longer count as “dealing damage.”
This isn’t a bug.
Good to know, I did not know this.