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You encountered a bug, usually when it restarts like that, an Observer left your match.
The part where it says PvP is disabled refers to the fact you are not in a PvP zone. Just set up another match and try again.
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Ah, i wasn't sure if it was supposed to do that because of the disabled PvP thing.
Stupidly, we didn't bother trying again and went on our merry way enjoying ourselves (and me getting muted for 2 minutes while we explored the arena, luckily, we were the only ones in there).
Thanks for the super quick replies.