That's only the 'Urban Legend' version of the story, the actual story is of Shade and Daniel at the end of the "Sanger Timeline", which is what breaks their loop. One night Daniel was sleeping with shade by his side as usual, but unlike other nights, a Greater Shadow got in the room somehow. Shade tried his best to defend Daniel but wasn't prepared for such an event so soon, and was eventually worn down. Right as the monster was about to land the last blow on Shade, Daniel risks his own self to save shade and buy him time to strike the Shadow away. Shade, not wanting to lose Daniel, who he had bonded to for a while now, tried all he could to help Daniel, but in the end he had to sacrifice a part of himself to give to Daniel. He gave him what the monster took, Part of his soul, part of his appearance, and an eye. Due to having to link his soul to Daniel's, Neither can truly [be destroyed] without the other meeting the same fate at the same time. Sammie, not knowing what was going on, got scared and worried for Daniel. Some time after this, they all reached Peiku, where they all reside to this day. The three seem to have drifted apart physically, but there's still a little bit of spirit keeping them all eternally linked.