Magic Mirrors

The Magic Mirror is an item found in Chests in the Underground, Cavern, and Underground Jungle. It allows the user to warp back to his or her Spawn with roughly a one second delay at no cost. If the player has not set a spawn point using the Bed, the Magic Mirror will teleport the player to their original spawn point in the World.

The Mirror was created to discourage players from committing suicide as a method to return home; it allows players with low health to return home without the risk of losing his or her loot. It is especially useful if a player finds himself or herself overwhelmed by enemies, under deep water with little breath left, or as a quick means of escaping Chasms.

The Magic Mirror is essentially the same as clicking "Save and Exit" and re-entering the world, but it is quicker and does not result in the despawning of dropped items.

Trivia

 * The Magic Mirror could be a reference to the game Legend of Zelda: A Link to the Past in which Link uses a magic mirror to return to the light world from the dark world or the first room of the dungeon he is in.
 * The Magic Mirror could also be a reference to Luigi's Mansion in which examining a mirror with the Game Boy Horror (first-person mode) will cause the player to be teleported back to the first room in the game.
 * The Magic Mirror could be a reference to the Blinking Mirror of the Suikoden game series in which teleports the main character and the character's party back to his or her headquarters from the world map.

Bugs
If the player uses the magic mirror when an item is in the reforge slot with the tinkerer, or in the crafting recipe slot with the guide, and uses the magic mirror, the item will teleport with them.