How does stacking Battle Furies work?

Battle Fury

Deals a percent of attack damage in a 225 radius around the target. Does not work on ranged heroes.

Cleave damage on non-primary targets is not reduced by armor values. Cleave Damage: 35%

Now, let's say I have 4 Battle Furies, and I do 346 Damage (100 base, 246 from the Battle Furies).

Does the game recognize this damage as:

1.) 4 separate sources of Cleave with 35% AOE doing 4 simultaneous instances of 121 damage (35% of 346) for an AOE total of 484 not including the separate 346 damage that is dealt to the cleave-unaffected primary target.

or

2.) 1 single source of Cleave with 140% AOE doing 1 solitary instance of 346 damage (assuming you can't have more than 100% Cleave) for an AOE total of 346 not including the separate 346 damage that is dealt to the cleave-unaffected primary target.