Reverse the cloaker nerf

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Good. That means people can do something else than be invisible for the whole round.

Why do people act like the cloak was the most overused traitor item? I almost never saw the cloak used pre-nerf, now I doubt I'll ever see it used.

It wasn't used all that often, but that's because there were only two things you could do with it that couldn't be done with much cheaper stealth items: play an invisible gimmick all round, or steal some weapons and go on a nearly unstoppable murderous rampage.