Sableye Lost Mine damage counters aren't blocked by Jirachi Stellar Veil?

I was using the new PAR Jirachi and came up against a lost zone deck. Sableye was able to use lost mine, and my Jirachi was in the active spot. My opponent put 7 damage counters on Jirachi to knock it out, and then put the other 5 on one of my benched pokémon. Maybe this is intentional because Jirachi is technically knocked out, so it's ability loses effect, but it's still on the board and prizes haven't been taken yet, so it seems like Stellar Veil should still block the Lost Mine damage counters from benched pokemon. But, that may just be me misunderstanding how the knock out works at taking out Jirachi's ability