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I'm a bit confused as to how loot works? Once you get all the loot currently placed does it come back? Does it spawn in random spots in the railroad areas? Does it spawn in the same spots? I'm so confused, isn't loot what comes from the purple chests?
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After obtaining flippers, swim around in water on the overworld. Little black dots spawn(client side I believe, that means you don't have to compete with other players as much

), these are spots where you can obtain loot assuming you know how to do it correctly.