The Shortening Rules Questions

[The Giant]

Just want to be sure I'm reading this right.

The Xykon card has a "-level" on his stats. The original monster card version was a plus instead, so I wasn't sure if this was intentional or not. I'm assuming this reads that he gets a little stronger as he moves up the dungeon and a little weaker as he moves down back to the safe haven?

Correct. It's to discourage the "Everyone hole up in near the Dungeon Entrance" plan, and to encourage people to follow him down and finish him off.