I just tried to recreate this in an empty project with minimal objects/events. Turns out the 'on flash ended' condition doesn't even show up for the new project!! Definitely bugged.
My original project:
<img src="http://i.imgur.com/p1J2jpm.png" border="0" />
The 'new' project I was creating to reproduce this problem:
<img src="http://i.imgur.com/thBWzS0.png" border="0" />
Can someone please move this to the bugs forum? Seems like something went wrong here and I can't even use the 'on flash ended' condition.
On the lower image you are adding condition to lower level. You usually shouldn't add a trigger (something that 'triggers' from something that happens) anywhere but top level of an event.
EDIT: Tested it, works well for me. Take the trigger event in lower level(under the playerhit condition) of your event and move it as top level event.