New South Wales
EXAMPLE 1: I have one facedown Health. An effect in the game requires me to flip two Damage faceup. What happens?
I'll assume you mean you've suffered one facedown Damage. You only flip the one you have.
EXAMPLE 2: I have one facedown Horror. An effect in the game demands a gain one facedown horror, and then flip faceup three Horror. What happens?
You gain a second one, then flip both.
There is a debate on what happens if the flipping causes you to gain the second damage or third horror you didn't have before, whether you flip that new card too, but I prefer to just determine the pool when the condition triggers, so it's the same as above.