The Bloody Machete is a rare thrown weapon added in the 1.2.1 update, it drops from weak monsters during the Halloween season (October 24 to November 10). The Bloody Machete is thrown much like a boomerang when used but flies a short distance before plummeting to the ground instead of going straight out and back. The machete must hit a surface before it returns to the player.
This is not entirely like the boomerang. If it hits and tiles on the initial throw, it will fall straight down, bounce off the ground, and return to the owner. Also, when it reaches maximum range it will fall to the ground and then fly back to the owner. The maximum achievable throw distance is 23 tiles.
The weapon could be a reference to Jason Voorhees, the villain of the Friday the 13th movie series, whose weapon of choice is a blood-stained machete.