When I played my bubble pally recently, the group's haste cleric was telling me that he stands in the red to take damage to generate action points. I was telling him to avoid the red since it will deplete the bubble pally's temp hit points. When is it preferable for party members to stand in the red? I always thought party members wanted to stand in the red for double bubble to allow for max damage reflect but avoiding the red was better for a single pally in order to avoid too much damage absorption. I always use binding oath and templar's wrath when I am in dungeons. My main problem areas have been Garakas in ESOT and the scorps in ELOL. Those are two areas where I've seen the temp HP for myself and other pallies get destroyed.
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Assuming binding oath is not active, your Paladin will lose temp HP and HP whenever you OR allies take damage. Depending on the amount of temp HP, HP, and your damage resistance, including a negation, you will may begin to "melt" and die if you or allies are standing in Garakas, scorpion, or drake red AoEs, for example.
If binding oath is active, you are invincible. However, while you are invincible, 50% of the damage taken by you OR allies pools up. Assuming you have four points invested, binding oath will expire 8 seconds after it is activated. If binding oath's pooled up damage is too high, it will instantly kill you. The only ways to avoid dying is to take less damage overall (you or allies), pray your negation, damage resistance, temp HP and HP are enough, or activate another binding oath encounter before the original expires.