The club's loan deadline-day activity was restricted to the low-key signings of Jordan Graham and Donovan Wilson.
They confirmed the Toney transfer fell through, after an undisclosed problem showed up with the 18-year-old striker.
Wolves declined to go into details on the exact nature of the problem but confirmed everything was agreed on the deal.
Head coach Kenny Jackett said: "There's a number of things, but it didn't come off. The exact nature of it has to stay confidential, but the interest isn't there now.
"We wish the player all the best and we move on. I wouldn't say the door is completely closed but he won't be coming in this time."
The collapse of the Toney deal – and possibly one more senior striker target – meant Leon Clarke and Michael Jacobs were blocked from going out on loan to a League One club and Birmingham City respectively.
Jackett admitted he was trying to add to his forward areas, saying: "We certainly have been trying for quite a long period, but the right avenues haven't opened up for us."
Wolves' business was restricted to the low-key loan signings of two youngsters – Villa's Graham, who has been with the club for two months on trial, and Wilson from Bristol Rovers.
Both are on loan until January with a view to permanent deals and will go into the Under-21s squad. Central midfielder Graham has impressed on trial in recent months, playing for the Under-21s.
The 19-year-old Villa academy graduate has represented England at Under-16 and Under-17 level and had loans at Ipswich and Bradford. Wilson is said to be skilful and fast.
Jackett insisted Jacobs and Clarke are in the right frame of mind to play in tomorrow's clash at Brentford if needed.
He said: "They're ready and focused for playing for Wolves, definitely."
Kevin Foley has rejoined Championship basement side Blackpool on loan until January. The 30-year-old, who is out of contract next summer, could join permanently.