Ah right
External damage, ofc. The captain should be able to see that though - imo, but hey i didn't create the game
I only found it weird that i sank all the time, but this certainly improves my feeling right now
A bug would have been bad, especially when i recall the unmodded version of SH3, where you suddenly got men killed while on the sea, and at times you suddenly just died with no reason.. :P