It shows their stance correctly, but now it is showing the other player in warmode as a 'grey' figure and all npcs you are in combat with also in 'grey'. By grey I mean the entire mobile colour is in grey.07-08 Turley:
Changed : Status of other player (e.g. WarMode) will be shown correctly.
Getting other reports that their status bars also disappear when the other player goes into warmode. I haven't seen that one yet for myself.