1) Chest is on the ground. Well not exactly, its on the third floor in one of my buildings 2) Huh? Put stuff.. in it while it is... in my inventory? 3) It is decaying Items. I am not the only one with the issue. Many others have complained about it on Independence. I see there was a patch that came out. Doesn't seem to be included in it.
The player reward Magical Chest Item decays non-food items. I have a Rare Iron Lump that is taking decay. I got the Magical Chest on the Player Reward program. Decided to check it today and discovered it. Server: Independence