Endlessly lose sight of supernatural creature (6)

I believe the answer is:

goblin

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'creature' is the definition.
The answer and definition can be both people as well as being singular nouns.
Perhaps you can see an association between them that I don't see?

I cannot understand how the remainder of the clue works.

Can you help me to learn more?

(Other definitions for goblin that I've seen before include "Naughty sprite" , "Little monster" , "mischievous spirit" , "nasty little thing" , "Dwarf-like creature" .)

I've seen this clue in The Daily Express.

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