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It’s coming along nicely! I agree about the delay, because in your gif it sort of looks like you’re just bouncing off the enemy. Perhaps something like this:

  1. Die
  2. Fall to the ground like before
  3. Corpse fades out
  4. Character fades back in in respawn position
  5. Player regains control when fading ends

Up to you, of course. :)

There is a knockback effect when the enemy hits the player, but when life reaches 0 he lays down for approximately .02 second before respawning down in that bottom corner.
A fade out/in would be cool. I'm not sure how to fade a game object, though. I think in order to make sure I can get all the remaining things I want to add finished I'll just slap a timer on it and throw a fade out in the polish pile for now.

I appreciate that you keep checking back in on my devlog, by the way.
I've taken a look at yours and I'm excited for it. Survival is among my favorite genres.