I thought that it might be a failsafe to prevent people from server hopping and getting tons of loot from no actual work. That doesn't seem to be the case though because I tried to act like a server hopper on one character. I went into cherno and got into some random little house. I left then logged back to another server. I stayed in for about 20 seconds and then left again. I repeated this about ten times, but my character never reset. Then after I got that character killed (to make sure the limit wasn't 11 leaves/joins on a character or something) and played for real. After only my second server leave for the entire morning my character was reset.