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Question about The “Age of Darkness” Expansion Paper Merchant's Residence - If I rotate the Residence from level 2 back to level 1 and thus lose a progress point, do I immediately have to discard 1 of the cards in my hand if my hand limit is exceeded as a result of downgrading the Residence?


No. A verification whether or not the hand limit is exceeded doesn't occur until the end of the turn.