Could be a plot hole, but there are a myriad possible explanations really. For example, maybe she wasn't God Tier yet, but became one after this event? Could be that the frog lily pad thing functions as a Quest Bed. And with a dead dreamself, she might get God Tiered in the dreambubbles? Alternately, she and Meenah were already God Tiers, survived the explosion, and killed eachother to get a heroic/just death respectively.
I think we can trust Hussie to make up a plausible explanation, hopefully less of an asspull than my proposals.