Floating Nose vs Baby Oil

[Nobodynose]

Recently we had a game where two munchkins were battling the floating nose. I, in a very munchkinlike way, played the potion of cowardice forcing both to run away. One of them then played the baby oil card. Arguments ensued.

My thought, wad that the text on the floating nose reads "nothing can help you" so they should not have been able to play the baby oil. They say the baby oil allows them to automatically get away "even from monsters you cannot normally escape"

So this seems like an immovable object vs. Unstoppable force type of question. But for the official answer, what should have happened?