I understand the principle of operation of a simple MOSFET logic level shifter like the one described in this question. However, the answer to that question only states what happens when we apply logic levels to one of the sides leaving the other floating. I'm about to need a logic level converter for a bi-directional data line, so I'm interested in what we would expect to happen if both sides accidentally try to drive the circuit (e.g. by either side malfunctioning).
And then, how can the circuit be enhanced to ensure that we don't try to sink/source more than we can on either side? What about a situation where either or both sides aren't open drains but rather have internal pull-ups?