Indestructible overriding state based actions
I had a creature get blocked by another creature when the opponent played an instant that gave it indestructible until end of turn. Since it was at 1 toughness left, I played gruesome realization choosing second mode. The creature dropped to 0 toughness, so by state based actions should be going to graveyard, but instead lived.
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GameplayStudent#45608
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[Deleted User] commented
Damage does not reduce toughness like Grim Realization does. The Rotpriest was a 3/4 with 4 damage on it. Indestructible permanents are not destroyed by lethal damage.