Board Thread:Spoilers!/@comment-1894786-20150127205050/@comment-2153169-20150127211816

In fact, it says "the loss that caused him to lock away his magical hat for good".

I think if it was the loss of his wife, they would not choose these words: we all know it is not true, cos he used his hat again in "Hat Trick". The loss could be his daughter. Honestly, we don't know how Graced ended up with her adoptive parents. Maybe Regina changed her memories? Maybe she was adopted but her father did not come back?

Yeah, the loss of his daughter would stop him to use his hat definitely. That was what wanted her daughter, remember? She asked him to stay with her, and not got with Regina. I really think he would abandon his job/hat, in order to take back his daughter :)