Low on magic, not devoid of magic. When Regina crushes Graham’s heart, he still dies, something that could not have been achieved without magic still having it’s hold. When Gold says please, Regina listens: Magic. Gepetto’s parents are still puppets: Magic… after all, everybody else became human again,why haven’t they. Storybrooke is NOT our world, it is an inbetween land, placed in a protected bubble by the curse. Even the fact that no one ages is due to magic. Magic as strong as the dagger should certainly still work by that logic.
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