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This is a bug... In version 0.90 it was fixed, but for this you need to start a new game.

The bug itself is that the health of the bandit increases by 200 when you sleep. As a result, his health can be more than 10k, If you are too lazy to start the game again, just beat him!

I bested him, took me around 30 healing potions to do so though. I just wasn't sure if it could be done, since the HP bar didn't budge. Once it dropped(like a 100 hits in), it did so every hit. Thanks for the explanation! :)