Elster must either be the same guy, got there when you could tell it was a magic shop, or knew the previous owner, considering the name of his cave is "Elster's Dilapidated Magic Shop"
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Like dusty said before, elster stumbled upon the cave and decided to stash his belongings in it therefore making it his new home. In my opinion I think that was a great reason to put him there and a great use of the past creations.