Battle the first time 3-on-3 and lose causes a team rocket event to happen at the base of the volcano with the ice bomb. Beat them and he gives a second chance to you but it's one-on-one against an OP Magmar that FireBlasted my Level 50 Squirtle right out of the WATER, or err... Magma... so to speak... Squirtle got knocked out and when I tried talking to him again, he was running the sript that should play when you try talking to him after he was beaten and gave you the badge and TM. It's a clean ROM, so the problem has to be with the script. It doesnt change my enjoyment of the game, but it is frustrating that I didnt earn the badge, I was just given it. Ya know?
Also in the Cinnabar Lab, you can find where the doors were because it lets you walk into the walls. It's quite funny actually. Hahaha