I was atop green mountain, and entered the main building (not the tower), and loot always spawns atop the stairs. I found a nice pristine fire axe to replace my worn splitting axe! Well, i removed my splitting axe from my inventory, and it immediately disappeared permanently, but no big deal, theres this nice fire axe in front of me still! I attempt to make room in my inventory, but it does not fit. The axe then moved on the ground after i stopped dragging it, and it was 3/4 of the way inside the wall on the second floor, and i was unable to pick up the axe again. Now I am left axeless. I repeated this process with the baseball bat laying next to it and the same thing occurred.