I would be pretty pissed if this "exploit" happened to me. He's essentially saying he reset the quest chain right at Quest:Mending Fences - WoWWiki - Your guide to the World of Warcraft
So basically, instead of doing 5 more quests to be able to turn in relics, he had to do 26 more quests to get to exalted. Sounds more like an annoying bug than an exploit tbh. In the time you do your 21 more quests, you could have farmed a lot more than 2-300 gold.
If anything, thanks for the warning. Now I'll know never to xfer if I'm in the middle of this quest chain.