Shattered Kingdoms

Netharu starts to concentrate.
[HP: 84%] [ME: 13%] [PE: 79%]
>
An obese male halfling utters the words, 'pzaruio grulg'.
You are bathed in healing rays!
Malius Torg utters the words, 'aque bragh'.
You feel your skin sizzle and burn from Malius Torg's acid blast!
A corpse of Austrav fumes and dissolves!
23 silver coins fumes and dissolves!
A charcoal amber-studded bracelet is etched by streams of acid!
A wide-bladed khopesh is etched by streams of acid!
[HP: 77%] [ME: 13%] [PE: 79%]
> You try to trip a knight of Seawatch but end up tripping yourself!
[HP: 77%] [ME: 13%] [PE: 77%]
>

And he lost all his equipment and everything because of it.

Is this SUPPOSED to be like this?

I think it is. The helpfile says, "Should this acid destroy a container, it also has the chance of partially or wholly destroying the contents of said container." I don't know exactly how that works, but I'd assume that in this case the corpse counts as a container.

And that's the way the cookie crumbles.

The problem with corpses is there is no durability on them so they dont wear down. It is quite possible there is no code to check for if the items in a corpse has a chance to spill.