Moon-viewing Tower

Location in the game where you can fully recover your health and gather an oopart.

If you follow the path through the trees directly above the Traveling Merchant, you'll find a Treasure Chest which gives you a Diffusing Gem.

NPCs
Old Man
 * Star-gazer.

Traveler
 * Mentions the Forest of Confusion, to the east.

Traveling Merchant
 * Battle Sword - 3400G
 * Battle Gun - 3400G