Shyvana Dragon form Grievous wounds not working

Basically, before this patch shyvana autos in dragon form applied the morello affect, burning the target and negating healing. After grievous wounds got nered, now shyvana autos still burn (i think) but definitely dont apply grievous wounds. In this clip, eve gets autod by shyvana, then ults a brand, dealing 2000 magic dmg (you can see this number). With 25% spell vamp from gunblade, and 80% healing reduction from shyvana, she should heal 100 hp, but she actually heals 500 hp, the number she would heal if she didnt have healing reduction applied to her. This is just one instance, I've also seen shyvana not apply grievous wounds to draven or rengars with Bloodthirster.