Getting fire resist high enough will cause the grenade to heal you if cast too close. Tested multiple times.
Base armor set, resists low, grenade at my feet will kill me.
Using a resist potion, I take much less damage.
If I swap to my fire resist armor, it will heal me to full health.
Not sure if this was a bug or part of design. Would need to be nerfed a bit though as the grenade does do a full heal everytime. Can be exploited pretty easily.
The fact that the grenade doesn't deal damage to the player but instead massively heals you when you have enough Fire Resistance is honestly really problematic. It means it's basically the best weapon in the game, doing massive AoE damage and healing yourself constantly, all at the cost of the a measly amount of T1 essence.