Yes, or at least it was done once before. When someone gained access to admin login to the game and used it to spam Oryx and other enemies in the nexus, killing a lot of chars, they had no way to resurrect those chars other than roll back the server to before the hacking. Which they did. Any characters that had gotten created to replace killed chars were added as new chars, giving many people free char slots (I got 2).
I don’t know if they could do the same now. If they can, it would be much less disruptive as no-one has died due to it. They might have to issue some refunds due, to people who have bought e.g. pot storage. And there could be a giveaway to compensate people for the hassle/time.