[ORE] Damage penality

Hi. We tried a sample combat to grasp the rules yesterday. Doc jurassic vs wrait.
They started at about one move of distance. Doc declared first, transformation. Wraith declared an attack.
Wraith went first with a wider set then the 2x10 of doc, hit it and removed a die from doc set, ruining it and stopping the transformation. Is this correct?

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