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#1
You can blink and you can also be disoriented through the ground on uneven surfaces. Mines have a ledge that extends out at the entrance under the ground (Org entrance has one too) The mage is stuck on the ledge below the ground. You should still be able to cast on him, and him to you.
#2
Just a targeting bug, he most likely targeted you before you stealth d and it didn't drop the target of target on your side.
He shouldn't be able to see you if I'm not mistaken