This makes sense and I have observed this before. Gifted levels count toward levels earned. The character earned 30 levels and then earned another 30 when they were gifted. They had 29 to grant. When you transferred them you just changed who they could grant levels to but the character still had 29 levels to grant.

As for this being against the EULA/ToS, where is that provision? If it it a violation, I'd like to know since I have used this in the past and didn't see it as an exploit since the levels were earned and I was paying to transfer a character, so therefore they should not lose the levels they could grant.

- Souca -