I was running through gadgetzan earlier on my paladin when an alliance hunter ran up and used some kind of trinket that fired an arcane bolt at me for about 400 damage. This was right next to several guards, the other player standing right next to me. The guards attacked me, as if I had been engaging in pvp content (No thorns or Retribution Aura on) but left the Hunter completely unharmed.
Whatever this player did has now left a seemingly permanent shadow visual over my character. It leaves a trail when I run, and doesn't go away whether I relog or anything. WTF is going on.