I've had this issue as well. My wolves are showing as full green health-bars and alive. When the battle starts they aren't there, probably having died last round without my notice.
Here's a screen shot, the brown brac died last round. Pretty sure the pink one didn't end with that much energy either, I hardly scraped by out of that fight.
Here's another one, the black brac died last round. And no way are those energy bars correct, I got beat up for real. I tried refreshing the page and it didn't change, even when I cashed out and got the “level 12 completed” screen it showed the same full green bars and all-alive wolves.
another fun feature with this bug: I want to start into level 10. All wolves look fine, okay lets go. Nope, black brac isn't there, he died in round 9. That's okay, we don't need him, rip. Win level 10 that black brac has never stepped foot in. Going into level 11:
I'd also like to add that the gauntlet also shows that wolves had died when they have not. Going into round 12 it showed I had one wolf left alive, when all three survived round 11 with near full health.