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How far can a magic item resize itself?
Specifically, the party gained a Robe of Useful Items. The previous owner was a medium human. The character that most wants it is a Gnome. Would the Robe Shrink that much? Would it affect how many of the Items are available?
What about other items, like headbands, weapons, and rings?
Have a rules quote
When an article of magic clothing or jewelry is discovered, most of the time size shouldn't be an issue. Many magic garments are made to be easily adjustable, or they adjust themselves magically to the wearer. Size should not keep characters of various kinds from using magic items.
There may be rare exceptions, especially with race-specific items.
LULZ...im just picturing a ring that was on a dragon and a gnome walking up to the ring after beating the dragon going "call dibs on thia ring"
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As Snowblind quoted, Magic Items generally resize as needed, without altering any of their other properties (a resized 'robe of useful items' has the exact same 'useful items' as it did before the gnome put it on).
The basic idea is that gnomes and halflings shouldn't have significantly fewer loot options just because they are constantly fighting Humans or Orcs in a particular campaign...