It makes so you don't lose your amulet of loss if you were last hit by a player and have twist of fate.

Quoting from TibiaWiki (http://tibia.wikia.com/wiki/Twist_of_Fate):
"If that criterion is fulfilled and you have the Twist of Fate, you will only lose the Twist of Fate blessing. All other blessings and AoL will stay" (our code needs to be updated to check how much of the damage was dealt by players though, but this is better than not handling it at all).