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So basically, I won Edge of Ruin (https://wowwiki.fandom.com/wiki/Edge_of_Ruin) from Trial of the Champions Heroic and of course was super happy to get such an upgrade. After about 10 minutes, the server went down for like 10-15 minutes. When I logged back on, the item disappeared from me, which I sadly noticed after entering a battleground and noticed that I was slamming people barehanded.
What's the deal? Why would it be taken away?
Sounds like the server crashed and the last saved state for your character didn't have that item yet.
I equipped it even within the dungeon itself, so I presume it had to be saved somehow. Anyways, can it be checked so we can work something out?
Equipping an item doesn't trigger a save, it's something that happens on a timer. Just a few things force an early save, like trading something with another player. Either way, you will have to get the item again in the usual way.
That's unfortunate. Honestly, as a software engineer myself, I think it is a good practice to log epic+ gear, due to situations like this.