Paladin's Medallion of Vengeance either is misworded or the effect is bugged. It states that he "Fully Heals" but he only seems to gain half of his max HP. I don't have any relics that currently cause Temp HP or anything similar at the start of combat.
Additional Information
I just double checked and it does appear to both state that it heals to full, and shows on my end that it's healing to full.
Is it possible that when your paladin revived, the healthbars had rearranged/shifted so that you weren't tracking the right paladin?
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