My party made it to the cryohydra encounter in SCAP yesterday. They consist of 3 lvl 7's, 1 lvl 6, and 1 lvl 5, all gestalt. Since I lowered the number of heads on the monster to 6, I thought they would mop up the floor with it. So I started with the standard cold-breath attack.
After rolling good damage for three of the heads and the party making poor save rolls, I realzed if I had continued, I would have a TPK on my hands. So I choked, and had the hydra stop at three heads. I even fudged the die roll for the recharge so it wouldn't breath again right away (I rolled a 1 on the d4).
Anyway, my question is, how do you guys handle TPK's in a campaign like SCAP, or any other for that matter? Do you allow a do over of the encounter? Do you have everyone roll up new characters and take up where the old party died? Or do you scrap the campaign and use the opporunity to start another?