I had this come up the other day...wasn't sure if we played it right:
I had an AF face to face with a VSD in very close range of one another and unable to turn away from one another. I was overlapping the space station while he wasn't. Since every turn, we couldn't get out of each others' way, we each suffered one damage. However, since my AF was still stuck on the space station, we agreed that the damage just dealt from the collision would be healed.