Dinobot Sludge’s health is 12. Let’s say there are 15 damage counters total on my other Dinobots.
When I flip Dinobot Sludge to alt mode, can I move all those damage counters onto him?
[Source: WotC] 
Yes. This will, of course, cause Dinobot Sludge to be KO’d. He’ll be sad.
Does each damage counter moved by Dinobot Sludge's Alt Mode ability create a new instance of damage, or does the total amount you want to move count as one instance?
[Source: WotC]
Neither. Moving damage counters does not count as repairing or taking damage.
If I start my game with Wave 1 Dinobot Sludge and Wave 2
Grimlock and Dinobot Swoop. After I was able to bring the rest of my Wave 2 Dinobots into the KO area, Grimlock is KO’d and Dinobot Sludge was the only card left on my battlefield in bot mode. On my turn, I played the
Dinobot Enigma and then flipped Dinobot Sludge to take all of his damage, was this correct? Also, what if I had played a
Brainstorm then an
I Still Function! and then a Dinobot Enigma after which I would flip Dinobot Sludge? Is that a better scenario?
[Source: WotC]
In your first scenario,
Volcanicus appears on the battlefield with 55 damage counters on him.
In your second scenario, you can
I Still Function! one of the five Dinobots and then use the Dinobot Engima to form Volcanicus. Volcanicus will have 54 damage counters on him (because of the 1 damage ISF! repairs). No matter what, he will be KO’d at the end of the turn, so repairing him with Dinobot Sludge probably won’t do a lot.
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