Emil Vincent Alonzo
I read it as that whole paragraph being all together as:
Once the Heroes have equipped their loot and relics, reset the loot maker to the start position on the Loot-O-Meter. Any excess wounds are lost
As in : If you dealt 7 wounds throughout that round you would have gained 2 loot cards and that extra wound is lost and not counted towards getting loot since you reset the Loot-O-Meter.