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I just stumbled upon this event this morning. It was kinda strange. Also if you walk into the former "loot cave" at Skywatch it has some black ashes on the ground...it prompted me to hold "X" to "disturb the ashes" or something like that. It didn't do anything other than whisper something about "a thousand deaths are not enough for Master Rahool". Was kinda odd! Haha. So I just grabbed the sword and started smashing the shit out of everything.
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They added the remains after they increased the spawn time. But at least we know it can happen in other places on earth. Hoping to see what happens in forgotten shores with the mini boss knight there.