Forum:Prime Material dragon question

me and a friend are having a big disscussion about what happends if Prime Material Dragon and Reficule are on the field and then  a card that affects life points and we ended on 2 different conclusions

C1
if for example if a heal card is activated Reficule effect is activated is activated and then PMD effect get chained to it and you increase your life points or if a card that inflict damage is activated  PMD effect is activated and then Reficule effect get chained to it

C2
it seems a bit stupid for me but is that inflict damage and heal life points and the total damage is 0