  We present high spatial resolution optical imaging and polarization
observations of the PSR B0540-69.3 and its highly dynamical pulsar wind nebula
(PWN) performed with HST, and compare them with X-ray data obtained with the
Chandra X-ray Observatory. We have studied the bright region southwest of the
pulsar where a bright "blob" is seen in 1999. We show that it may be a result
of local energy deposition around 1999, and that the emission from this then
faded away. Polarization data from 2007 show that the polarization properties
show dramatic spatial variations at the 1999 blob position arguing for a local
process. Several other positions along the pulsar-"blob" orientation show
similar changes in polarization, indicating previous recent local energy
depositions. In X-rays, the spectrum steepens away from the "blob" position,
faster orthogonal to the pulsar-"blob" direction than along this axis of
orientation. This could indicate that the pulsar-"blob" orientation is an axis
along where energy in the PWN is mainly injected, and that this is then
mediated to the filaments in the PWN by shocks. We highlight this by
constructing an [S II]-to-[O III]-ratio map. We argue, through modeling, that
the high [S II]/[O III] ratio is not due to time-dependent photoionization
caused by possible rapid Xray emission variations in the "blob" region. We have
also created a multiwavelength energy spectrum for the "blob" position showing
that one can, to within 2sigma, connect the optical and X-ray emission by a
single power law. We obtain best power-law fits for the X-ray spectrum if we
include "extra" oxygen, in addition to the oxygen column density in the
interstellar gas of the Large Magellanic Cloud and the Milky Way. This oxygen
is most naturally explained by the oxygen-rich ejecta of the supernova remnant.
The oxygen needed likely places the progenitor mass in the 20 - 25 Msun range.
