About 30 minutes ago there was a glitch on my screen while using my omni-axe. After using the axe it stayed my main tool and then my Spicy Coaltana was gone.  I went to revert back to a prior save but all my saves from the last 5 hours are gone.  That's a lot of progress to lose. I'm not sure what to do now.

My omni-axe stayed my main weapon and kept swinging until I ran out of stamina. I switched my weapon to my mantis blade and tried to use the omni-axe again and the same thing happened. Now I have no mantis blade. That's easy to remake but my Spicy Coaltana is a huge bummer.  Does anyone know about this?

 

I'm playing on xbox series S.

Yes, If your backpack if full and you switch to your Omni-Tool, you will lose the item you were holding. I've lost countless items now.