After an event target gets removed from the DOM, the logical target of the pointer as implied by the Pointer and Mouse boundary events (i.e. over, out, enter and leave events) should be the nearest ancestor still attached to the DOM. PEWG has recently reached consensus on this behavior, see https://github.com/web-platform-tests/interop/issues/380. Chrome has been keeping track of a node even after it gets removed from DOM. As a result, if the pointer moves to a new node B after the hit-test node A is removed from DOM, the boundary event sequence (pointerover, pointerout, pointerenter, pointerleave events and the corresponding mouse events) used to imply a pointer movement from A to B. As per the new consensus, the event sequence should imply a pointer movement from the "parent of A" to B.
Samples: https://output.jsbin.com/yumacid