In the properties of the game in Steam I have two buttons on the Local files tab.
Translated from dutch this would be "Remove local gamecontent" and "verify gamecache integrity". This would seem to be able to reset the game to default state. But ultimately you may have to remove the game from the library and add it again later to make Steam download it fresh. I don't know how multiple instances of the game factor into this. I don't know if this affects your LSH instance.
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