The Grimm Forest

If I discard the Wood Cutter to cancel the effects of one monster, does the monster ability resolve for other players before me?

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No.
The Woodcutter needs to be discarded before the Monster ability activates. So if you discard the Woodcutter it will protect all players from that effect. Monsters either trigger and affect all players, or are canceled by a Friend or Fable and have no effect.
Related Rule(s)