Upstream has released updates that appear to apply and compile correctly.
This update has not been tested by PaperMC and as with ANY update, please do your own testing
Bukkit Changes:
2651717c SPIGOT-7292: Support for alpha channel in Color and a few improvements
CraftBukkit Changes:
dbc32ffa0 SPIGOT-7292: Support alpha channel in Display entities
cef8bd993 SPIGOT-7294: Call EntityDamageEvent for Interaction entity