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The compass had me confused at first too. You're actually following it backwards. Either the dev was trying to leave a hint that ended up too obvious, or tried to stylize the compass and accidentally made it a bit misleading.

The indicators on the compass look like they're arrows pointing toward the center, and you're following the "arrows" I assume? That's certainly what I thought and did. You actually want to ignore that arrow shape, and follow the compass in the direction that would be obvious without the "arrows" pointing opposite.

What you've found is the "secondary" use of the compass that you'll need later.