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I was doing a mission in Frostburn Canyon and when i opened one green box a Loot Midget jumped out of it and started attacking me. So i was wondering are locations and boxes in which Loot Midgets spawn fixed or can they randomly spawn from any box on any map?

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I've seen that same midget twice. He's inside a medium sized building with Goliaths. I'd assume they're set. – Ben Brocka Sep 21 '12 at 20:17
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If it's anything like the original Borderlands then they are set locations with a random chance to spawn. – Sadly Not Sep 21 '12 at 20:39
@BenBrocka So they can spawn multiple times from the same chest? – ChrisHateZ Sep 21 '12 at 20:42
I assume SadlyNot's correct. However each time I've seen one I've always been playing through with someone else as the host; I haven't seen them multiple times in single player but I would assume they respawn just like bosses, possibly with a random chance of appearing or not. – Ben Brocka Sep 21 '12 at 21:11
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I also randomly saw a badass loot guy in the vicinity of where a loot midget had popped out previously.. That whole sentence sounds really weird. – Nick Sep 22 '12 at 3:02
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Their locations are fixed, but their chance of spawning (and which midget you get, sometimes) is random. So a given container will always have a chance of giving a loot midget. For the containers they do appear in (they're rather rare) they have a high rate of spawning, maybe over 50%.

This is most easily tested in the Wildlife Exploitation Preserve in the room with the holding cells (where Bloodwing was before Jack moved her "somewhere dramatic"). There's 4 cardboard boxes in here, each with a loot midget...sometimes. Sometimes you can even get Jimmy Jenkins in the boxes, sometimes one or all of the midgets aren't there. More often than not though it seems all 4 spawn.

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