If somebody attacks a higher-level target, they should become flagged for their range no matter what. A level 15 attacking a level 29 would then be attackable by anyone from 7 to 37. I don't know what level your group members that he attacked were, but in order for him not to be in range to you after attacking them, they couldn't have been higher than 20. I still don't get the blue tag - I haven't seen that before at all.
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