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Hollow Point is conditional and works with Melee abilities.It's not bugged. Conditional damage has never applied to any ability that is considered melee since the game got popularized. If it was a bug it would have been addressed already. However it is not explained anywhere at all and can only be found out by testing yourself in sandbox. This is still a invite only play test alpha which you are testing so not everything is going to be crystal clear. That's what so good about even having a sandbox at all to test in. Same as everything that states "bullets apply" also works for melee even though it's not a bullet. So you can use Silencer and only melee someone and trigger it's effect, or Toxic Bullets etc. There is melee resistance but bullet resistance also reduces melee damage. None of this is stated anywhere.
Looks like it does. I had not tested it since it got remade. That to me looks like an oversight/bug on how the effect is applied since no other conditional works.Hollow Point is conditional and works with Melee abilities.
Either way it feels bad that the item anyone would assume is the best for close range Melee abilities doesn't actually apply it's conditional damage.