Really well polished game with a fun and simple gameplay loop. The puzzle design is good and rewardingly simple. Contrary to other folks I think the HP system in place is pretty novel, since I don't think this game style rewards high difficulty challenges --- I kinda like that it's just a small visual punishment to keep the game moving. For this reason I'd let hp slowly refill after enough time passes or enough room-moves are made.
The walk animation is cute but maybe a bit too cute. Sort of simplistic? It's not bad though.
All of the lighting and particle effects are really solid and the game performs well without errors.
I think it would be nice to map the click button to the space bar action, as interaction, and it might help to increase the hitbox of the places you can pickup/drop torches to keep it fast and fun.
This is a wonderful showing for a solo game jam. Great job!