Champion retaliation ability works while sleeping and also checks prior to the check that a sleeping person cannot be bashed. IE Its working in a scenario where it should never trigger as the bash does not start combat.

Reproduce: Bash a sleeping champion

Small snippet below take it you as you see fit.

wilderness <486hp 551m 630mv 15348tnl (-24.78%) 6 AM> c sleep Haldoran
Haldoran yells 'Die, Zhelrath, you sorcerous dog!'
Haldoran's legs buckle, and he suddenly slumps to the ground and sleeps.

*** SNIP Spell up ***

wilderness <483hp 349m 639mv 15348tnl (-24.78%) 7 AM> As Krommthan closes in on Haldoran, he is met by a solid blow!
Haldoran's retaliation injures Krommthan.
Krommthan has fled!
Krommthan leaves west.