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Originally Posted by Xard
Think it comes from the -10% damage which you do, combined with the 10% less damage taken. Most mods count the living bomb explosion as your own "damage" because of how it parses on the combat log. Perhaps due to a small oversight by Blizzard on some effects, the -10% damage done thus applies because you're in def stance, similar to your reduced weapon damage and etc. Then on top of that, in def stance you take 10% less damage, and so the "reduction" seems to be double applied, while really its just the application of both reductions in a strange manner.
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Makes sense. Once on Chromaggus (boy was that fun) and a few times on Skeram either the AI activated Blade Flurry or I had it already active when I was MC'd. 300% damage bonus was applied to the melee damage, BF damage was then calculated, then another 300% damage bonus on top of that. I think my favorite instant was when a melee attack that didn't even reach 1k on a tank had Blade Flurry hit a fellow rogue for 14.4k damage.