I suppose you were able to solve it with the hints/solution from my DM :)
I just uploaded the latest version 1.04 which SIGNIFICANTLY reduces the game's file size from previously 1.5GB all the way down around 500MB by compressing tons of music!
The difference for MOST fights in hard mode is "just" a slightly higher level, however I agree with you, that fight is quite tough early on. However it is by design that I want to leave the player with the thought of "maybe I should continue elsewhere first" from time to time - at least in the...
I managed to quickly fix the bug and upload the latest version 1.03 tonight for you - even if your Purple Gem is currently stuck on the socket already, you should now be able to pick it up and solve the puzzle - you might just end up with a spare Purple Gem in the end... :)
I will look into this (however I will not get to this until probably tomorrow evening MET). Those gem puzzle events are quite tricky to script correctly without a single possibility being glitchy...^^ I hope you have not saved your game after placing the gem? :( (even if so, if the bug is...