Somewhere is a mouse over that shows how HP are calculated. Perhaps check those.
And as I said, the traders inside the fort are pretty bad, you need to leave it for the better ones.
I don't think you should be able to use items in combat from someone elses inventory. If it was outside of combat, it is a normal possibilty tough.
If you get that easily several 1000 coins, 10 coins is kind of trash still.
Don't know about the dragging loot stuff, don't think every tried that, or at least can't remember.
