The loss of magnetic properties is called the curie effect. The temperature at which it happens is called the curie point. Above the Curie temperature, the atoms are excited, and the spin orientations become randomized and that is what makes materials lose their magnetic properties. Minidisc is a magneto-optical media. Data gets recorded to it by using the curie effect.
The magnetic loss is not permanent. Once this cool down the magnetism returns.
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