Do you lose all your items, or just the loot, if you're too greedy at the end of Harran prison quest?

Considering the following (hah!) comments:

Be sure that you leave the armory (step toward the exit door) before the timer runs out, or else you die and lose everything. Players that try to be too greedy will suffer in the end with absolutely nothing even after making it this far. The time stops the moment that Crane stands in front of the exit door - nearly touching it. The door will seal off in the back of Crane once he is in position to where the timer stops.
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and

if you run out of time, the door will seal and the room will detonate. This instantly kills you, but even worse, it removes all the loot you picked up that run. Sometimes, it's best to cut your losses and save what you have.
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and

I died at the end and got nothing. The loot I managed to pick up disappeared and I would have to redo the whole thing.
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It seems you lose everything you collected on the Island itself.

By the way, the timer's duration is dependent on the difficulty: the default value seemed to be 30 seconds, which was later changed to 60 seconds, while difficulties Hard and Nightmare crank it up to 2 and 3 minutes respectively, depending on the time it took the player to get there.
These parameters also change the tier of the items you are able to loot:

The best reward (Guru) is achievable under 8 minutes on Normal mode, under 15 on Hard and under 25 on Nightmare. However, if it's your first or one of the very first few runs, you'll most likely end up with very long time, that's normal, the more you play the better and faster you do.
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Here is a wonderfully in-depth overview.

You lose only the items you looted. Your other items are safe. It would be way too cruel the other way :)