Oh man this was hard but...
<Update V 1.8.1>
BIG BAD BUG FIXES
I know this is a public comment section, but holy **** this bug was hard to kill.
Two main bugs fixed:
1) P3 respawns normally again in FFA mode (easy-ish fix)
2) Tournament mode resets normally again on kill. (previously, a player could burn to death on a magma patch and become invisible) (holy smokes this took 2 hours)