First I’d advise to not panic, assess properly where you are standing, and then ask again here in this very thread.
A reset should be a last resort because it’s unrecoverable once done.
Using [Userscript] Wanikani Item Inspector you can self study every item (especially the burned ones) and note which ones you pass and and which ones you fail.
Then taking into account what items you have forgotten (especially the burned ones) you can resurrect on a case by case basis.
Do you want to do only kanji ?
Or also vocab ?
Do you use other services and or read or practice elsewhere ?
Did you forget because you didn’t do Japanese at all or because you did not encounter those items in the wild ?
A lot of things will impact the choice that is right for you.
You may just be cold because of the lack of practice and it’ll come back running once you’ve warmed up.