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there were quite a few times when you were forced to run, it was the first or second. the last time you did so, he came back fully cured, so it wasn't a factor in your win. he'll def want to fix it tho.
it isn't the lacerations that was pwning you face. it was the flat bleed plus dislocated leg. shofangi hook mod procs based on wounds, damage scales to wounds, laceration procs as well, (i think.) the flat bleed stops you from applying health to cure dislocation wounds. the next time he grapples you, the hook chance gets boosted by that much, which gives him a free stance parry bypass PLUS prone damage multiplier. by the time he's doing the third grapple loop, you're pretty much guarantee'd to get hooked, taking 1000+ damage from a 400 damage attack and still getting bleeded out of your ass.
grapples have the ostensible weakness of not being able to give monk arm action affs, only poisons, in exchange to unlocking powerful enders. nekotai had to fight tooth and nail to get a grapple that even gives poisons. the laceration mod lets a shofangi give affs with his grapple AND apparently the grapple (and the ender) gives poisons as well. in addition to hook being proccable on the grapple, gives a free prone.
tanking this tactic is possible if you have a high health pool. you ignore the bleeding, put dislocation higher on priority and stance parry legs while aplying health to keep wounds low. then you pray that hook doesn't proc and nullify stance parry anyway. either that or you be an acrobatic to lock enders out of his repertoire, prioritising chest wounds so stomp chest can't stun you as he does the grapple.
edit: there formatting fixed