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The stone at the bottom of the Heart of the Island is made of exotic matter which "plugged" a hole leading to a pocket of electromagnetic energy. When the plug was in place, it interacted with the electromagnetic discharge in a way that created a warm light as well as a whole bunch of crazy alterations to the laws of physics in the nearby area. This area just happens to be an island, isolating its effects from the rest of the world. The Wheel is also made of exotic matter. When Ben spins it, it emits a light similar to that at the source, because the exotic matter is kinetically interacting with electromagnetic energy in the area