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There are several other uses for a Fire Bug besides burning sugar cane. I've already asked a question to determine these but one I know of is the ability to burn Spider Webs blocking your path in a cave.

A Fire Bug will sometimes explode upon use when using it on Sugar Cane. I was wondering if the Fire Bug also has a chance to break when performing other activities or can it only happen when burning the Sugar Cane? 

Releated:
What else can a Fire Bug be used for besides burning Sugar Cane?

2 Answers

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The fire bug explodes more often when using on sugar canes but it can also happen while using in spider webs for example
by (5,523 points)
You've tested it and have had it break while burning spider webs?
by (3,703 points)
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Yes, it happend to me while burning spider webs and had to buy a new one but it’s kinda rare
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 It will sometimes explode upon use, causing 5 damage to the user and being destroyed in the process. 

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