I've started a new side project. After some editing to the Mushroom Kingdom Showdown Engine, I was able to make a damage system simillar to Smash.
Expect a lot more to be added to the engine. If you want to try out the damage sytem, click this link: https://drive.google.com/file/d/0B8mGOAr_ozIvOWE0dFJSTlg1ZUE/view?usp=sharing