I actually reported this a bug, and was told it was a design feature.
Short description: More of a design flaw, a role with the 'Manage Roles' permission will apply itself to higher roles the user has as well.
Steps to reproduce: This is the first action to take - Make a server with 10 roles. This is the second action - Give the middle tier role the 'Manage Roles' permission. This is the third - Give a user that mid tier role, AND a role above that.
Expected result: The user should only be able to assign/edit/remove roles under the mid tier role.
Actual result: That user will be able to assign/edit/remove roles under the highest assigned role it has, NOT only under the mid tier role.
This shouldn't be how it works. I don't want all powerful Role changing gods, I want designated users to be able to manage a SPECIFIC group of roles under the 'Role Managing Role', even if it has a role above it on the Role list.