Non-flagged players can be ganked?

So, I'm new to Nostalrius Begins, though I am not new to vanilla private servers..... I've played on many before deciding to try this one out, and know for sure that non-flagged players can not be killed by enemy players.
I've been leveling my orc hunter since last night, and just got to level 10 about a half hour ago. I was in Durotar - so a NON-PvP zone - running from Sen'Jin to Razor Hill. Prior to where I was, I had seen in both "LocalDefense" and "WorldDefense" that Durotar was under attack.
All of a sudden, up comes running a human mage, with the players name above the characters head appearing in "Red", which I thought odd, because normally that means that the player seeing that, is also flagged for PvP. I double-checked, my own name was "blue". He cast arcane explosion a few times, killed my pet, then proceeded to kill my hunter!
So..... I don't know how to report bugs or if this is even a bug (or if some kind of cheat or hack), but yeah, I thought I'd come ask, is killing enemy players while they ARE NOT flagged for PvP, a thing on this server?
Here's a screenshot - http://i.imgur.com/yL4WDQJ.png
You can at least see in my combat log that I was killed by another player. Again, was not flagged for PvP, and normally, that doesn't allow enemy players to kill the non-flagged, enemy player.
I've been leveling my orc hunter since last night, and just got to level 10 about a half hour ago. I was in Durotar - so a NON-PvP zone - running from Sen'Jin to Razor Hill. Prior to where I was, I had seen in both "LocalDefense" and "WorldDefense" that Durotar was under attack.
All of a sudden, up comes running a human mage, with the players name above the characters head appearing in "Red", which I thought odd, because normally that means that the player seeing that, is also flagged for PvP. I double-checked, my own name was "blue". He cast arcane explosion a few times, killed my pet, then proceeded to kill my hunter!
So..... I don't know how to report bugs or if this is even a bug (or if some kind of cheat or hack), but yeah, I thought I'd come ask, is killing enemy players while they ARE NOT flagged for PvP, a thing on this server?
Here's a screenshot - http://i.imgur.com/yL4WDQJ.png
You can at least see in my combat log that I was killed by another player. Again, was not flagged for PvP, and normally, that doesn't allow enemy players to kill the non-flagged, enemy player.