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When Venging Lump is dealt damage, you lose that much life.
When Venging Lump is dealt lethal damage, instead, regenerate it and it becomes an 8/1 Abomination and has "Whenever a creature deals damage to Venging Lump, destroy that creature."

The goblins knew not what it was. Little did they know that the odious moans it made when they poked it with their sticks implied that it was not in a good mood.