I'm torn as to how big that issue is.
Doing something about it, imo the current mechanism leads racers to believe the screw up never happened, that you got a 2nd chance with a time rewind. I know arcade-y is where we're going but I'd like to see something different than mario kart blinking. Perhaps that phase-out effect some mentioned, implemented in a grungy/"believable" way (https://cagedelement.com/forum/viewtopic.php?f=5&t=2790
Re-utilize that effect for the actual stacked-up phasing-out pickup (because it's also a glorified damage denier):
lvl1 flippable shield < lvl2 drone repair < lvl3 phase-out
...and I'd say why not