That is because the scorch caused by incandescent counts as gun hits/kills.
And the scorch damage is boosted by 20% as well.
The scorch also makes wells or orbs on multikills because it counts as weapon kills.
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This is all true. It seems this issue is a result of all these mechanics working as intended by themselves, but behaving unintuitively when put together in this specific edge case. Personally, I would rather have the 20% damage buff apply only to shots landed instead of shots landed and scorch ticks, since I would get more bang for my buck. Shot-for-shot, Sidearm hits are always gonna do more damage than scorch ticks, so spending Charged Magazine stacks on actual rounds is preferable. Does that make sense?