Quick walkthrough on how to retrieve your lost armor after the “Awaken to armor being stolen” defeat scenario in Hallowed Marsh. Found very little help on the internet when it happened to me, so here we go.
Guide to Retrieve Lost Armor
When you awaken after this defeat scenario, you will find yourself in the ruined mansion pictured below from the outside. Your health will be down to half full, half burnt but otherwise you will be okay. But the big issue is that all your armor will be unequipped and not in your backpack (if you had one), spawned nearby. Your stuff is hidden in a chest nearby.
Before you do anything, note that it is important not to die before retrieving your loot, or it may not be back in the chest when you eventually return to the location. “No dip, Omniscient Guide Writer,” you say, “but sometimes life gives you lemons.”
In this case life has given you 1 Stringy Salad, 1 Dark Worker Attire, and 1 Antidote located just through an empty doorway nearby. There is also a chest nearby with random loot. Down a set of stairs you will encounter Rancid Water. There may also be a Marsh Bandit, Ice Witch, or other similar enemy nearby but hopefully they will be more than half dead from poison if you wait a bit.
Make Your Way to Shore
You will have to go through the Rancid Water to reach shore so heal as much as possible before attempting to cross the water. Quickslot any potions or food you have which cancel posion, and increase your stamina regeneration if your character is not good at sprinting.
The shortest route is actually not down the stairs, but off a ledge further along. If your character can survive the drop, it is recommended to cross here. Otherwise, take the stairs and sprint the entire way to shore. Use the Antidote halfway across or later (when poison has reached x2), not before.
Armor Containing Chest Location
Once on shore turn right while facing away from the Rancid Water. Make your way up the hill to another set of ruins. Be aware that there may be some bandits nearby.
On your right at the new set of ruins will be a doorway marked with two yellow elk banners. There will be a gate in this door preventing your access to the room beyond.
Your stuff is in one of two chests in the room behind the gate.
In order to unlock the gate, you need to pull two levers hidden nearby and marked by glowing circles. The path to each lever is marked by an elk banner. —>
First Lever Location
While standing facing the gate that leads to the chests, turn 180 degrees and cross the path the the doorway opposite. Inside this other ruined mansion, turn right and go into a side room to pull the first lever. Pull it only once.
If interested, you can continue deeper into the ruins to find a chest with random loot and some marshmelon plants.
Second Lever Location
Now, exit the ruins by the gate and proceed back towards your spawn.
While facing away from your spawn, head across the path and slightly left. If you stand by the big monstera-looking plant, you can see the next elk banner.
The second lever is up a set of stairs ahead.
To reach it, you will need to cross more Rancid Water, but this is a shorter trip. And hopefully you’ve already cleared out any potential ambushes and had a chance to heal by walking around to the other lever first.
Once you pull this lever, the gate protecting the chests with your stuff in them should open. If you want, you can then return to a small dungeon underneath the location of the second lever to murder all the thieves who dared to touch your stuff.