If memory serves, it was during the hell levels that the xp loss was huge. Basically because you needed so much xp to get through a hell level and a the death loss is calculated as a percentage of the total xp to get through the level.
i.e. if it takes one million xps to go from 30 to 31, and the death loss was 10%, you'd lose 100,000 xps if you died and were level 30.
Then once you hit 31, maybe the xp from 31 to 32 would be say 500,000 with the same death penalty, you'd lose only 50,000 xps
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