I don't know Batou. I mean when we watched from Kiritos view he clearly got the " You Have Died" signal in his vision. I'm thinkin ghtis is a plot whole of somekind to keep the story going.
If you read the little clip on the CR page Ryder
I'm curious to see if they dont' include some of the other Character like Liz, Silica, Klein and the other guy's who name escapes me ATM. The merchend weapons dealer guy that helps kirito, and see if they are brough into this game too.