This test requires a course with a teacher and student enrolled, and two badges. Use the attached badges if you do not have your own.
1) Log in as the teacher, go to the course and click 'Add a new badge' (either via the gear menu or the Administration block, depending upon the theme).
2) Upload badge 1 and set the criterion to Manual issue by role>teacher; enable it and award it to the student.
3) Repeat step 1 for badge 2.
4) Access the student's profile from the Participants list and verify they have been awarded badges 1 and 2.
5) Go to Badges > Manage badges.
6) Click the X in Badge 1 Actions to delete it.
7) From the next screen, choose 'Delete and keep existing issued badges'
8) Click the X in Badge 2 Actions to delete it.
9) From the next screen, choose 'Delete and remove existing issued badges'
10) Access the student's profile from the Participants list and verify they now only have badge 1 but not badge 2
11) Verify that in Manage badges there are no badges available.