Yes and no. A bit of explanation here because its bugged on live and changed on PTS.
On live, it will crit every HOT tick you have going so it doesn't exactly consume the crit. If you have a DOT on a target though; that will consume it.
On PTS; supposedly the HOTs will not consume it at all and only the next direct damage attack is supposed to consume it. I have not been able to test if that could still happen if you then cast the heal after the cloak or if it is strictly limited to damage only now. Either way; it won't matter as far as morph selection as it is now the only true cloak morph.
In patch notes there was info, that it can be only consumed by direct dmg attack (didnt have chance to check), so i guess that's what we should expect when it will hit LIVE.
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