Think I just encountered a bug with this one; it's supposed to discard highest rarity, but when I played it just recently, it discarded Skeleton Warriors (common), when my opponent had a Vampire (uncommon) in hand, which he played immediately thereafter.
Screenshot: http://i.imgur.com/eny2M.jpg
EDIT: Scratch that, actually; just finished that game and consulted the replay. Turns out that Monster Slayer discarded the common Skeleton Warriors, and a Vampire was drawn as a result.