Should lose actually be iose? Then it would make sense to me

It is iose, but note that the first letter of all the words is capitalised. In this font, a capital I looks like a lower case l. However, if it really had been an L it would look different as a capital. Therefore, if you spot that all the first letters are capitals, you can see that this is an I not an L. So, very, very sneaky, but fair.
Overall, an excellent grid.

Night eyes. Good point!

Good grid