using Townportal resets zone?

I moved the caravan to Keth.
I exit the caravan and run through the area, kills mobs and collect a lot of loot.
At some point, my inventory is full, I can't pick up anything anymore.
I use town portal to go back to the caravan.
I sell/disenchant, and use TP to go back where I left off.

Result after clicking at the TP at the caravan: I am standing at the start of Keth, at the caravan entrance. Everything reset and it's as if this is a completely new area.

Is this working as intended?

If you stay in town like 3 minutes it resets. Not sure the exact number, but the timer is very short. Gotta keep dipping back into the portal so it doesn't reset.