Not true. Else everyone would smother to death on a long flight due to CO2 buildup. Fresh air is continuously fed into airliners during flight, and at a fairly decent volume.
That being said, those around her would have been inconvenienced for the time it takes to flush out the odors.
The smell will linger, awhile.
But, spilling a vial of fingernail polish will ruin the carpet, seat, cabin walls and the tray. It will be a huge mess, and will require that the seats be removed and replaced - same thing with the carpet.
Overall, it’s just a rude thing to do, not courteous to any of the other passengers at all.