Hey, yes the game should reset if you hold down the left thumbstick 'button' during the 'reload your playspace' screen. youll feel a haptic bump, just keep holding down the controller and it'll eventually reset completely.
As an alternate to this, if you are in the blue room and dont have a game loaded, hit the left controller menu button (or push the small grey button on the left of the console) and it'll open up a settings menu. You can change your anchor position, remove/add new wall sections or remove/add new barrier cubes.