Request: No items lost at Colosseum

I was playing through my mod today, and I realized that every time I lose a match at the Colosseum, I merely reset the game and try again rather than lose my valuable item (and have done so for years with FF6). It got me thinking: does anyone EVER actually let themselves lose a valuable item, or do they just hit the reset button like I do?  I mean really, what is the point of losing an item when you just reset the game anyway?  In my opinion, it is especially annoying resetting the game on real hardware, since you have to watch the whole intro again, plus I don't actually like resetting old hardware over and over.

So, is it easy to hack the game so items are not lost when you lose a match?