do you gain level or are we stuck at 1 I've killed the spider boss and a good bit of creatures but still level up
It's the first safe room between the tentacle and the ghost area. Enter it with Luna's armor fully broken and you have a % chance to trigger the event.
For now it's only that room and that makes it a little difficult to find. Eventually every dungeon safe room will have at least one guy trying to pick up your girl.