Chapter 401: Chapter 386

The chance that they might be run out of town does cross Cain's mind in the aftermath of the fight, but overall the crowd is supportive of the decision that Vala made to declare Purrseus the winner. While she didn't actually fly during the fight, her wings definitely helped her out a lot, and everyone could see it. 

The actual rule doesn't specify 'flying' only that species with innately 'Unfair Advantages' over their competition are prohibited, so even the judges are on board with her call. The way she beat the unfortunate Purrseus made it hard to argue that she did not have an unfair advantage. That last kick across the ring cemented it in their minds. She was just so much stronger than her competition that even had they settled it by grappling, he wouldn't have had much of a chance.