Magnussen shows he has Smallwood letters in possession when he visits Sherlock and Watson at Baker Street apartment... Then, when they are at Appledore, he reveals there's no vaults. But there's still the letters somewere! Where did the Smallwood letters go?
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We and Sherlock never see the contents of those papers. I assumed they were just random bits of paper and not actually the Smallwood letters — Magnussen was just goading/baiting Sherlock.
Even if he did physically have the letters at any time (my guess is he never had them, he just had access to them at some point and committed their contents to his mind palace like everything else), for all his arrogance, he doesn't strike me as stupid enough to risk carrying them around with him!
It kinda reminds me of Jekyll, another TV series by Moffat, when Jim Moriarty was singing "It's raining, it's pouring". Mr. Hyde was also bound (to a chair) while singing this song.
Why does Mycroft go out of way to protect Magnassen when he's such a major threat to security?
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I think it's more than that. Mycroft flat out said "if you against Magnassen you go against me". No it's something more than that, like there's a history between the two we don't know about.
Regarding Pretty Little Headshots in his vision sequence, is it a straight example? I thought it was an aversion, as the bullet had no exit wound (that and the glass behind him didn't shatter).
Thoughts?