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A time loop or loop is a physical and temporal resetting of an enclosed area done by the App. These are known to occur in smaller instances such as Battle Zones, as well as larger instances such as the Game. A loop can also refer to the period of time and location that is affected by the reset.
Within the loop
The loop is restricted to an enclosed area, and as such the are outside of loops are not affected by loop resets.
An environment is reset by a loop when specific conditions of the enclosed area are met, namely victory of one party over all others present within the loop. It may also end when no participant is left, such as in cases where an Exception decimates everything within the enclosed area. When a loop resets, the App restores everything within the enclosed space to the way it was when the game started, including memories. However, memories can be retained so long as a connection is formed with the area outside of the loop.
Battle Zone resets do not typically incur memory loss since the Summoning Emblem forms a connection to Tokyo, which includes the area outside of the Battle Zone.
In comparison, Game resets typically incur mass memory loss among all the inhabitants of Tokyo due to no connections being formed outside of it. This would especially be true of younger generations, who have lived inside the Walls of Tokyo for all their lives. A notable exception to this is individuals with Sacred Artifacts that act as pillars. These Sacred Artifacts have the ability to resist being swept away, as they are deeply rooted in the earth.
Outside of the loop
The area outside of the enclosed looping area is not affected by loop resets. Additionally, nothing from the outside can interfere with what occurs inside, although they may witness what's occurring, as in the case of Battle Zones.