a conundrum of the floating nose and the halitosis potion

[m8n]

Originally Posted by Grej

If I killed floating nose by potion of halitosis and another player played a Wandering Monster, used Transferral potion and lost the battle - do I get a level for Nose?

He wasn't allowed to play a Wandering Monster.

https://munchkin.game/gameplay/faq/:
Q. Some cards say they automatically kill a certain type of Monster (like the Potion of Halitosis and the Floating Nose). Can anyone interfere with this? Can anyone play a Wandering Monster?
A. As of July 2018, removing the final monster from a combat ends the combat immediately.

Q. I used an ability to automatically kill a monster. Another player used Wandering Monster to add a monster to the fight, and then played Transferral Potion to move the monster to himself. He beat it. Who gets the level and Treasures for the monster I killed?
A. As of July 2018, if you automatically killed the only monster, combat ended and this whole sequence can't happen. If there were other monsters still fighting, however, this sequence is legal. You get the level and Treasures from the monster you killed after the transferred combat has been resolved. If the other player also wins, you draw Treasures first.