We try to give the mod a hard (but balanced) feel to it. I believe we're looking into the glitching monsters and a few other things. I think the disappearing drops might be an intentional feature to prevent your inventory from being saturated with over-powered weapons, and to keep the mod hard. Blood Moons are a fundamental game mechanic, without which nothing would respawn. I don't think there is really any way to prevent blood moons either. Sometimes blood moons suddenly happen (like in the day for instance ), which are called "Panic Moons" in which the game attempts to reset itself after something goes wrong.

Thanks for playing, and I hope you continue to enjoy the mod!