Bug Report or Rules Interpretation -- Smoke Bombs

Playing against Advanced Chairman in Rook City.  Heroes' HP are:   Grandpa Legacy 10 HP, Dark Visionary 10 HP, Argent Adept 8 HP, Wraith 5 HP.  Smoke Bombs are in play, Chairman is flipped.  

Wraith hits Chairman with Razor Ordinance; Chairman retaliates against Wraith.  Since she has 5 HP, that makes her the "hero with the lowest HP," which means that according to Smoke Bombs, the damage should be redirected to the hero with the highest HP (I would have chosen Legacy, who is currently immune to melee damage thanks to Next Evolution), and reduced by one.  Instead the damage just went straight to Wraith.  

Is there something strange about the Chairman's retaliation power that takes it outside of Smoke Bombs' ambit, or is this a bug report I should turn in?

Sounds like a bug.   Do you have the game log by any chance?

Are you sure there wasn't a hero target with lower HP, such as a Decoy Projection?

It was on an iPhone -- does that save the game logs anywhere?

Not that you be able to access but MigrantP does have a good point about Decoy Projection.