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Obsidian Meaning. The Obsidian crystal stone meaning can be traced back to Paleolithic times where it was used to make arrowheads and other tools. Cherished for its deep, glossy sheen, Obsidian is often called volcanic glass because it is formed from molten lava that has cooled very quickly. Beautiful Glass like crystals, often used for neutralising negative energies, Obsidian Healing Properties. Obsidian is truth-enhancing. A strongly protective stone, it forms a shield against negativity. It blocks psychic attack and absorbs negative energies from the environment.