I just got the deluxe edition for Christmas. Fun! But we did have trouble with the "Exploding" ability. Do monster killed by Exploding count as defeated? Do they drop Loot? Does the current player get to keep them for use as Experience Points (red Xs)? Do their "when Defeated" abilities trigger?

Example:
On the 3rd level, I have a room with Hak-Tonog the Incontinent (Exploding, 1 Loot, 1 X), Doc of the Dead (Encourage, 1 Loot, 1 X), and Ugly Ogre (1 Loot, 1 X). Roy moves in and wins the battle against Hak-Tonog.

Hak-Tonog explodes and kills all the monsters. Now, does Roy get to keep all three monster cards (and turn them in for a new schtick at the end of his turn) or just Hak-Tonog? Is there now 3 Loot or 1 Loot in the room? Does Roy get healed by Doc of the Dead's Encourage?

And if Roy DOES get healed by the Encourage, can he heal the wound from the Exploding?

Thanks!