dev 778ccb5:
AI cast Vindicate on my One-Eyed Scarecrow I cast in response Display of Dominance choosing 2nd mode to have my permanents protected from blue and black opponent's spells. However Vindicate did resolve and destroyed my One-Eyed Scarecrow.

2/25/2015 If you choose the second mode, and if a permanent you control is being targeted by a spell when Display of Dominance resolves, nothing happens right away. When that spell would resolve, its color is checked. If it’s blue or black, that permanent will be an illegal target for that spell and won’t be affected by it. If all that spell’s targets have become illegal by the time it would resolve, it’s countered.