The current text is a bullet-list with if/else logic, but the flow doesn't work. For example, the top bullet says "If the reference is not an absolute reference", and the bottom bullet says "else" – but the intention (I think!) is to follow the bottom bullet after following the top bullet, so "else" doesn't correctly convey this. Then there are random branches hanging out under nested ifs ("If no resolution is possible") that seem to short-circuit the logic, but the instructions for "as for a RESful URL reference" aren't identified anywhere. I can't figure out how to read this. Here's what I think the text means to say:

1. If the reference is an absolute reference, proceed to step 3 using this absolute reference. Otherwise proceed to step 2.

2. If the reference has the format "[type]/[id]" and the Bundle containing the resource has a Bundle.entry.fullUrl that matches the FHIR RESTful URL regex, then create an absolute reference by extracting the [root] from the fullUrl and appending the reference ("[type]/[id]") to it, and proceed to step 3 using this absolute reference. Otherwise, proceed to step 5 since no absolute reference can be determined.

3. Attempt to resolve the absolute reference by looking for a Bundle.entry where Bundle.entry.fullUrl matches the absolute reference. If successful, stop here. Otherwise proceed to step 4.

4. Attempt to resolve the absolute reference by dereferencing it (e.g., if it is a http:// URL). If successful, stop here. Otherwise proceed to step 5.

5. Resolution has failed. The reference has no defined meaning within this specification.