This does not mean it drops your entire inventory when you die, like the current mod by Zack0Wack0 on RTB - just the weapon that you were holding at the time of your death. The item would also have to stay on the ground until the (Slayer) Minigame was reset won, or ended.
EDIT: Due to items slowly disappearing, rather than having it disappear when the minigame is reset, is if it disappeared when the minigame was won by either team...this way, if someone was to die in the spawnroom and drop their items, they would be gone for sure the next round...rather than players spawning and possibly picking up left-over weapons from the previous round.