Does "'Collapsing Parallel Worlds" remove Locations that are in play?
The Crisis only affects cards in your deck or discard pile. Cards left in play (such as locations), and cards in your hand, are neither, so they are not affected.

This is corroborated by this Board Game Geek thread:


  This was asked earlier on here and I believe Matt [Hyra, creator of the game] answered it with yes they keep their hand and locations just the discard and deck piles go.


Unfortunately, I have been unable to find the original reference.