1. Possibly! If time has actually been working correctly the whole time it may hesitate to reverse itself, but it's entirely possible for it to cause a reversal anyway if the characters are adamant that something is wrong. Lying may also work, but it's not a guarantee and if they're lying about it frequently there may be consequences.
2. Time will only reverse as far as it needs to - nothing would get accomplished if it tried to fix time from the beginning, so it'll only correct immediate mistakes. On an OOC level it shouldn't reverse so far back that it could cause a paradox or undo major changes to the setting, so it wouldn't be able to reverse past an imprint wave unless it's a very recent one. That's something we'd rather save for an event.
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2. Time will only reverse as far as it needs to - nothing would get accomplished if it tried to fix time from the beginning, so it'll only correct immediate mistakes. On an OOC level it shouldn't reverse so far back that it could cause a paradox or undo major changes to the setting, so it wouldn't be able to reverse past an imprint wave unless it's a very recent one. That's something we'd rather save for an event.