They didn't really have enough time to explain how the time re-set other than what they showed. I think Nick knows what really happened because he's the POV character, so it is always from his view point. He's living what we see, and it would make sense that because he's the POV character that took the journey and fought the ultimate battle he would remember what he did.
Diana is the Super Hexenbeast Wunderchild so just like she could see the invisible images, and could tell that Nick was acting as Renard, or how she could tell Eve was around even when nobody else knew and on and on with her super powers. It fits that she would have been able to see and remember everything that happened because of how they wrote her.
Which all things considered who the heck would want to be the parent trying to control that 13-17 rollercoaster of emotion/rebellion LOL.
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