That might be true but first it must reappear. Else the speculation is moot.
I received a secret communique that informed me that some salt mine gnomes borrowed it. The veracity of that statement remains unverified.
Well, we ARE in the Flying Castle, and if you used said blade in the Lower Levels, there is no guarantee how it will transform before you see it again. There may be many transmogrifications before it slips back quietly into your pocket.