Me and my fireteam just beat Xylar on the new impossible difficulty and he dropped us year 2 Ghorns! So awesome Bungie. I know we're worlds first and no one else has managed it, but keep trying people! You'll get it! Just kill the void head first, makes it a million times easier.
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He's been doing that since the dark below update. He recently started dropping 340 gear and a cross between OG vex, Telesto and gjallarhorn.