Bug - Death & New Game Loop

I just had my party leave town to the eastern zone, to get quickly massacred by a large group of spiders; all died instead of being maimed. I had a loading screen stuck for some time, with in game sounds but no visuals. 

After hitting escape and quitting back to the main menu, I decided to start a new game instead. Once I did, my PC started out in the normal spot, but the rest of the party were across town at the eastern zone exit, all with icons for the wizard +deflect buff (about a dozen). Their equipment was all on the ground instead of on their persons. Additionally, the group of NPCs near the starting area that I'd killed in my previous game were also dead, and their equipment was on the ground (also duped on my party, who had looted in my previous game.

1) Party dies instead of being maimed by animals in eastern zone

2) Game doesn't reload, so hit escape and quit to main menu

3) Start new game with new character

4) New PC spawns in normal area, but party is across town at eastern zone exit

-Rest of party is naked, with their loot piled on the ground around them

-Rest of party has half a dozen duped spell icons from the wizard's +deflect spell

-NPCs standing near the river (Trygil I think?) looking for the girl in town, who were killed in my previous game, are still dead in this new game - and their equipment's all laying on the ground, despite also being in the loot piles of the rest of my party