No, it does not. Let's take Deathflare as an example:
Before> Deals unaspected damage to target and all enemies nearby it with a potency of 400 for the first enemy, 10% less for the second, 20% less for the third, 30% less for the fourth, 40% less for the fifth and 50% less for all remaining enemies.
Now> Deals unaspected damage to target and all enemies nearby it with a potency of 400 for the first enemy, and 50% less for all remaining enemies.
It's a loss no matter how many enemies you're dealing with.
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