Comment 2 for bug 403373

You could eat up arbitrary amounts of disk this way, which you would have across VM reboots. The RAM quota should get checked if any machine gets turned back on after turning off, but you could temporarily eat up all the available RAM on the hosts if you felt malicious, potentially preventing other VMs from booting.

I think the most correct behavior here is to refuse the transfer if it violates either quota limit on the receiving end.