Does not strip Echo buff/debuffs from surviving participants. Surviving a reset isn't super common, probably, but there it is. The effects, lingering from previous runs, are fully functional with regards to accumulating stacks and incurring penalty effects in subsequent attempts.
While you are looking in to that flip the switch for some exp bonus and discounts in the store as well. Merry Christmas to all the dev team have an awesome holiday with your family.
Last night this event became bugged when Grolik died and Aary was alive and flying around the room invulnerable. Orbs and guardians continuously spawned, and we all died/left zone. One of us zoned back in after several minutes, and found all the adds were still active and not reset.