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1. Yes. Special initiative grants you the ability to interrupt or negate the ability removing you - it doesn't require that the removing card remain interrupted or negated. With SI, you can even play Reach of Desperation to draw 3 and die.2. Yes.
but from what I could tell from the scenario it seemed like he was saying that he had multiple heroes in battle and 1 was being discarded.
1) Say my one Hero in battle is being specifically (and only) targeted for removal