Yes, I've seen that a few times. Seems like some way of dying doesn't reset the survival streak. Possible deaths are: -On bosses. -Attacking someone too tough on hitlist. I think I did the latter once myself, but it was long ago so I can't be certain.
Losing health to the point of demise does tend to generally end one's life. The survial streak should be a true counter of the length of one's life. Does the survial streak need looking at? Does it really matter? Would the missing challenges not be better? Need i really go on, i mean seriously... The fact that the dropout menu now says "outbreak" rather than "job" really puts your sugar on your corn flakes for you? Are they PRRRrrrrrreat? (Almost like "GRRRrrrrreat" only a pussy version) Please, i shall ask nicely... PLEASE start playing ZS somewhere other than Myspace so that i may kill you repeatedly for your insulence. I wouldn't be surprised if you had "already suggested" that the whole background layout of at least one of the games be completely redone, just to give the artist something to do. I will say no more on that, i will just think it. Feel free to think along with me, try to imagine what i might be thinking.
Has this happened in other instances? If you see this again, please send a message into support with screen shots so that we can investigate further.