The way old retreat worked was actually tactical and interesting. But the buff/debuff reset made it exploitive...admittedly.
How about we go back to old retreat but nothing resets? You take out a character whatever is currently on it stays until it reenters a match...possibly another match.
This would make the player having to deal with all the effects coming their way, but varying between squads introduce another element of strategy, dealing with effects in a different context/match situation. Different way of playing in different game modes is win/win.