If Elder Dragon is on the battlefield and my opponent uses Flurry of Blades, do my units die?

Ruling: No, your units will NOT die. Elder Dragon's ability only applies to damage you deal to enemy units, not to your own units. When you play Flurry of Blades while controlling Elder Dragon, your units take 1 damage normally, while all enemy units are killed.

Sequence:

• You play Flurry of Blades
• The spell deals 1 damage to all units at all battlefields
• Your units take 1 damage (not lethal)
• Enemy units take 1 damage, which is lethal due to Elder Dragon's ability
• All enemy units die; your units survive with 1 damage marked

Nuances:

• Elder Dragon's ability specifies "your damage" and "enemy units" - both conditions must be met
• The ability does not protect or modify how damage affects your own units
• Any source of damage you control will kill enemy units with Elder Dragon active