Spoiler:
it regains all your HP and *THEN* gives you the hugged effect, which in turn *increases* your HP, so in the end, you still aren't at full HP, which is what the usage description implies. Perhaps you should first be given the effect and *then* regain your HP?
Discuss.-Added a spoiler tag, Please remember to use them when discussing things such as an item's effects. -SportGuy