It seems that killing the midget when you're naked makes him not drop anything. Did anyone else encounter this?
he didn't drop nothing because you had no health
how the midget works is that if you click on him he will teleport to a random unrevealed empty space, unless there are no unrevealed empty spaces, in which case he will give you his XP (think of him like a reward for clearing every empty space)
so what actually happened is that he just teleported somewhere else