Tebore, Tricker,
The red die receives a relatively small current - well under 100mA. The purpose of the die is actually an ESD protection diode - something you find on almost every high power LED manufactured. It has nothing to do with indicating an incorrectly installed LED. I suspect the manufacturer had lots of excess red dies and this was just a cost effective way to use them instead of scrapping them. We simply took advantage of this undocumented feature.
Henry.