Booty Bay Rep Loss due to Scorge Event

I'll make this as simple as I can. I talked to a GM and I am not satisfied with the answer.

I fly to Booty Bay as I was working on the "Scavenger" fishing achievement. I landed and was attacked by a zombie at the flight master. I was slowed by the green "ooze" and jumped down. At the same time, some players were apparently killing Booty Bay guards to get Bloodsail Rep. I ran past them and jumped into the water to get away from the Zombies. As I was swimming away I begin losing 125 rep over and over again.

By the time it stopped I had lost 125 rep 5 times.

Here are some facts.

I was in combat via a zombie.
I never attacked a booty bay guard.
I was not grouped with the people killing booty bay guards.
I did not heal those killing the Booty Bay guards.

Apparently all I did was walk past booty bay guards that were being killed while in combat with a zombie and it cost me 725 reputation.

The loss of reputation was completely out my control. Once I flew to Booty Bay, there was nothing I could do to prevent the loss of reputation.

I would like to see some more information on this issue. Whether it is intended or not for reputation to be lost in this manner. And if it is intended, I would like to see a post or a page on the official website that describes reputation working in this manner. I don't know of any other case where where reputation can be lost by a player who takes no action related to losing said reputation.

For example I don't lose Aldor reputation when I happen to be standing next to someone doing the repeatable quest.

If you have proof of an alternate means of my reputation loss please post it, and please inform the community so they can stay way from these cities if they care of about their reputation.

All I am after is 725 reputation with Booty Bay to be restored. If i wasn't such a pain to increase reputation with Booty Bay I would even have made this post. But 725 rep with Booty bay is hours upon hours of mindless grinding.