Internal logic in the C code. Not sure exactly what that logic is, but it releases the base nameplate to be reused on another unit. Even if a certain build appears to use the same nameplate over and over for the player, I wouldn't base any code off that theory.
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WoWInterface AddOns
"All I want is a pretty girl, a decent meal, and the right to shoot lightning at fools."
-Anders (Dragon Age: Origins - Awakening)
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