Abyss Shroudwalker/Shadewalker and Chaos Inoculation

I believe this is a bug, but I am not 100% sure.
From what I understand Shroudwalker/Shadewalker is a modifier on a rare monster where the monster teleports on top of you and then releases a cloud of smoke. The Abyss version, also places desecrated ground on the well...ground. Desecrated ground prevents healing and deals chaos damage over time.

I am deadeye hollowpalm, who was running roughly 4.4k ES at the time, and I have chaos inoculation. The desecrated ground, or whatever aura thing this guy has still deals damage to me, and even worse, since it seems to be registered as chaos damage it deals double damage against my ES. At least, that is what it seems like, because my 4.3k es went to 0 in roughly 1 second?

Has anyone else had this interaction? Am I crazy?

Basically nothing else kills me, but this one interaction is like 90% of my deaths.