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DO NOT use STEAM Cloud. Don't know about everyone else but that thing is nothing but a giant headache for me.
Well good to know steam cloud is the culprit, my whole problem is because the hdd the game was in went back and i lost everything in it, was hoping stupid steam cloud would have stored the latest session, silly me.
Make sure to have the Steam Cloud only accept your saves rather than overwrite them.
You control what saves you give Steam rather than letting Steam control your saves.
How exactly do i do that?
When I had issues connecting Online then Steam would ask me in a window when I could connect again if I wanted to upload my saves to the Cloud or download the Cloud saves to overwrite my progress.
Although many Steam updates have been made since that time so I'm not sure if that's how it operates currently although it has kept my preference since that time so the Cloud never overwrites my saves even to this day.
1) I disabled Steam Cloud a long time ago.
2) I made a desktop shortcut for the Torchlight 2 folder. In Windows 10 it's "This PC\Documents\My Games\Runic Games\Torchlight 2".
3) I made another new folder for my desktop titled: "Saves for Torchlight 2".
4) Whenever I exit the game I open the shortcut for Torchlight 2 and copy the "modsave" and "save" folders. Then I open the "Saves for Torchlight 2" folder and create a folder titled "Saves 001" or whatever number is next. I then open that folder and paste my copies of the "modsave" and "save" folders.
Some people copy the saves to a thumb drive instead of to their desktop, which would be preferable in case something happens to your hard drive. I do occasional backups instead, but when I get more thumb drives I'll be copying to those as well.
Now, if Torchlight 2 ever crashes on you and you can't get it to load again, you have an easy way to get everything back and running again. Usually you will have to delete the "local_settings" file so the game will load. Torchlight 2 will make a new "local_settings" folder for you (you'll probably have to reset your preferences, such as "show blood", "show helmet", Vsync, whatever you had before). When the game loads, all the game files may be wiped clean and will only give you a prompt to start a new game. If that is the case then you exit the game, go into the Torchlight 2 folder. Delete the "modsave" and "save" folder (or temporarily rename them or put them somewhere else if you want to be extra cautious) and copy/paste your saved versions of those folders into the Torchlight 2 folder. Whoop! Everything's back to normal.