I don't know how or why it happened, but when I got totally annihilated by Death Gaze, I didn't get a game over. It just acted like he had run away. Luckily, I was smart enough to revive everyone before getting into another battle, or I likely would've gotten a game over first thing upon entering a battle. Also, since I just defeated Death Gaze, I won't be able to try and duplicate the possible glitch any time soon. Luckily, getting my party annihilated by him didn't seem to recover his HP.