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		| Taqwus said: It might be appropriate for an item to be 'lost' in some cases from a shapechange, but -- does anybody know if the items are vaporized, or whether they have the usual "battle loot" chance of being recovered by the winner?
 
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 Not vaporized. 
For some reason, in a single player game I had an Arena winner that shapechanged into a hand-less form every combat.  Perhaps a dragon pretender. It dropped the trident every combat, then found it again after winning the battle (and automatically changing back to human).