Are The Stars Wrong for an Itsy Bitsy Monster?

[d-vils_wingman]

I play an Itsy Bitsy (-5 to Level of Monster minimum 1 and 1 fewer treasure minimum 1) on a large monster so I could defeat it if I also use a one-shot bonus. My opponent sees this and decides he wants to try and keep me from beating it since I would not accept his help. He plays The Stars Are Wrong, which can be played during any combat and either discards a single monster immediately or subtracts 2 from the combined strength of each monster I am fighting. I read the rules as stating that a monster is defeated if either it is either killed or using a card to eliminate it, and my opponent reads it as the monster leaving combat, as though fleeing, leaving me to loot the room rather than draw the treasures. By my reckoning I would draw one fewer treasure and go up a level, but by his reckoning I would get neither. Is there an official ruling on this?

[StaticHamster]

The monster is not defeated, but discarded. You get no levels or treasures.

You were still in combat so you do not get to Loot the Room.

[MunchkinMan]

In this case, the Monster is simply discarded and you are given no instructions that would give you any Treasure. And, yes, since you already faced a Monster, you can't Look For Trouble and you can't Loot The Room.