Horizons bounty hunters hunting me does not seem correct

I am wondering if this is working as intended. I had bounties in a few different systems and bounty hunters are tracking me down. I understand this mechanic and I welcome it. What I don't understand is when they attack me in a system I am not wanted in I can't attack them back without receiving another bounty. This doesn't make sense to me. If I am not wanted in a system and they attack me it should flag them as a criminal and I should be able to fight back. With this current mechanic I either have to just run all the time or fight back and just deal with being wanted pretty much everywhere.
 
You are correct. If they attack you in a system where you are not wanted, even assuming they are using a KWS, then they should become wanted as a result, allowing you to defend yourself.

Do you have "Report crimes against me" enabled in the right HUD (functions I think). This needs to be enabled for ships attacking you to become wanted.
 
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