but I have noticed, upon death the Imbued magic cape doesn't disappear, but in-fact it drops where you died. You can run and pick it back up as @Detected said.
Confirmed 10/14/18 as I died in mage arena, and was told items were not looted. But only thing that was there when I showed up was my Mage Arena II Cape. Waited 8 minutes and my loot still did not appear tho. (maybe a EIM Death loot bug?)