It can only be awaken once and triggers an event where it rampages through different zones killing everything. After that the wardens no longer spawn if I recall correctly (there's nothing to guard!) and it's no longer visible in-game in the zone. masklinn has a much better memory than I do of events that happened 20 years ago and can correct me :)

The server isn't necessarily ruined, but if you're a min/max type of player you'd certainly be upset at not having the chance at some of the drops. On actual EverQuest servers this wasn't that big of a deal as the next expansion with better items came shortly after, on Project 1999 this is a much bigger problem.