Question on Experience Loss Upon Death

I died in the Nether with 32 or 33 levels (having started at level 8). When I re-spawned, I had ZERO levels. Is that correct, or is it a bug? I thought you were supposed to lose a percentage, like maybe half. Losing all my hard-earned stuff was painful enough (Ghast tears, Ender pearls, magma cream, and a ton of quartz), but being reduced to level zero is a bit harsh, guys. Show a little mercy. This makes me want to give up the game along with the ghost.