If I, as a the player, feel guilty about it after the LARP, even though the character, who is thoroughly evil, felt no guilt, that's similar to bleed.
If you use the broader definition used (proposed?) by Montola, then the example you give is definitely bleed. Personally I prefer the broader definition, because it can be used to talk about a more general phenomena of what you take into a larp and what you take out. I think it's the way many Nordics mean bleed because they're interested in the sociological angle of how games affect players beyond the game, and what players bring into games, but that's just the impression I have.
Like I said I don't think bleed is a great word for this wider meaning, I think it was chosen because it sounds edgy rather than its actual merit.
In my opinion, the more narrow definition for bleed is just a synonym for "identification", a term already used to describe how a consumer of media puts themselves in the position of a character. There is already a lot of research into identification in books, movies etc, which could be instructive in translating the concept to larp. So I wonder if identification would be a better word for the narrow definition - I don't think it needs a new trendy term.