I was told that if your party gets wiped you loose everything you got in the dungeon. Lets say your party get to jelly king and no one wants to revive. Would you loose all your mats you found, and heat for the previous 10 levels? I think that you keep everything that is in your inventory. Heat is lost for that level but nothing else.
Can anyone confrim either way?
No. That's wrong. You only lose the heat you generated that level.