UrgentDragon

I've lost right elf charm due to the same issue

You are not alone! I encountered this problem tonight. I was also at upper yard fighting a moth, after I respawned, I found everthing I equipped was gone. Weapon, head, body, leg and trinket. Im ok to spend some time to build another set of weapon or armor. The problem is trinket. I equipped right elf charm at that moment. I really really really want to get my trinket back. One more thing to add, my bag was full when I died. Not sure whether this was the root cause.