That would make sense. also, since the helm functions in low-light conditions, it wouldn't activate while the torch was equipped. maybe the bug prevents it from re-activating after you put the torch away.
Maybe i'm just a weak casual, but it'd be nice if once I loot something in Arena mode, I kept access to it. it's irritating having to re-loot all the stuff, when I've already beaten the first people several times.