So, I tested this since I do have 2 accounts, and the results are not completely consistent. I played a mage against a warrior. The mage played Ashtongue, the warrior played Cursed Blade, and my mage Stickyfingered the warrior’s Cursed Blade then played Animated Armor.
Mage played Ray of Frost on Ashtonge, damaging Ashtongue 2 and damaging the Mage 1.
Warrior hit Mage’s face with 1/1 Novice Engineer, damaging Mage 2.
Warrior hit Mage’s face with 2/3 Manafeeder Panthara, damaging Mage 1.
Warrior hit Mage’s face with 6/3 Moonfang, damaging Mage 1.
Warrior plays Mo’arg artificer, Mage uses Ice Lance on Ashtongue, damaging Ashtongue 8 and damaging the Mage 1.
So, it looks like anything above 1 damage gets reduced to 1, but 1 damage gets doubled to 2 for some reason. I might try to see what happens if the cards are played in a different order, but that’s all I have right now.