Where do you find vanishing stone?
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You don't.
You have to find all of the stardust then take the stardust to Martel.
Then she will give you the Vanishing Stone.
You have to fight and you will earn the vanishing stone.
There are at least 3 places you can get the Vanishing Stone. They are:
1) From Martel when you give her all 50 Stardust,and
2) In Lohan at the ticket booth for 60 tickets (or 600G if you just buy the tickets).
I forget which enemy exactly you have to beat to get the third one, but I know it's on Disc 1, and that you encounter him naturally (as part of the story line).
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