Originally Posted by Yenadar
The tooltip of "all sources" is also not 100% accurate. I have noticed that it has no affect on damage from most damaging auras.
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I think I tested it a long time ago and discovered that against magic damage it's treated as a -spelldamage effect, so using the max rank (80) against a magic nuke causes the caster's spelldamage to be treated as 80 points less than it actually is.
So it would make sense that it wouldn't affect damage auras since those almost always have a spelldamage coefficient of zero.