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Is there a way to heal?  I took a hit and spent five minutes walking around with bloodstains obscuring half the screen before I gave up.  I love what I've seen so far, but I'm not always the best at avoiding monsters, so I'd love to know if that bloodstain is permanent.

Yes the blood is permanent, but if we come back to The Emulator for a future update I think we will add healing over time. Glad you are otherwise enjoying!

Alrighty, then, time to bring my A game.  :)