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The curved terminator line on the moon, despite the flat nature, can be explained by the moon's unique luminescence properties. The moon isn't just a passive reflector but has areas that emit light variably. The sun's light interacts with these zones differently, resulting in the appearance of a curve. This "self-luminescence" is uneven, hence why we don't always see a full moon. The terminator line's curvature is a manifestation of this uneven light emission and reflection.