Not a bug..You cant just zerg rush every battle! I had this problem with drake splash..80s hitting the entire army killing everryone in 1 hit..I used to tactics to win the battle(on reload)..arranging my army with spaces in between so the splash didnt activate. Won the battle with only 1 loss to a lucky crit. 

Adapt or die

Meaby its because splash doesnt calculate armor, Seen that bug in other games, have no patience to test it now though

Sincerely
~ Kongdej

I've also seen some strange things with splash damage. Looks like it does friendly fire some/all of the time?

Does the splash damage get multiplied by the number of soldiers in the squad?

Maybe, but this is not the source of the bug.

I figured my juggernauts had enough hitpoints for the two of them to bash on the same iron golem for a while, absorbing some marginal splash damage. Was I wrong! Target golem hit for a dozen hitpoints, splash on friendly juggernaut for 87 from a 27 attack, killing him outright. Not much fun.

Also, splash damage seems very inconsistent right now:

• Most hits don't generate any splash at all, with occasional hits doing massive damage. If I were to guess at the current formula, I'd say it feels like 25% chance to deal 4x splash damage, rather than 100% chance to deal 1/4x splash damage as implied by the description.
  
  
• My champions never seem to get splashed. 

Awesome, so champs can get splashed, mine must have just been lucky.

Last night attack a late game spider (forget the name of it) with a 7 unit strong rated army.  First turn the spider mesmerizes the whole army, runs across the map and kills all but two of my units (including my champion and an iron golem).  One of the units to survive was the unit he targeted. Splash damage calculation is way off.  I'm just going to leave that spider alone and hope he doesn't move.

Yup. Saw this last night as well. Level 9 Path of Defender Sovereign with over 50 armor took 84 from a Skath Lord and died instantly. The Spearmen next to him was just fine, thanks.

I really hope we get a patch for this sooner than Beta 4. It's making me not want to play.

The xml says 50 splash damage for Juggernaut. You can temporarily fix this by reducing the splash to 5 or so. We won't have another update for quite a while longer.

I might put up a balance mod next week. Nothing crazy, just some basic fixes like splash. Need to ask Hf some questions first though. I'll make a post.

+1  Agreed, the splash damage is just plain stupid.

Oh my.  Started a new game last night.  Had a great capital city, a good second city, lots of outposts because I was in the desert and there was no land to settle but still quite a bit resources.  I had upgraded the Altarian Defender to ride wargs and have upgradeable everything--I like the Athican longsword.  My power ranking was drastically behind the Verga and Magnar.  However, everytime I ran into their troops I would absolutely dominate--perhaps they had large armies, but poor quality.  That is until I ran into a Yithril army containing two juggernauts.  My army was devastated.  Unhurt troops would be killed in one shot, by the splash---Over 200 points of damage.  I still won the battle but the damage had been done the two following armies both had juggernauts in them as well.  I couldn't heal things fast enough.

The game actually ended when I ran into Magnar, he pretty much could one shot every hero I had, including my sovereign.  It was a quick death.

Bad excuse >)...

Sincerely
~ Kongdej