Yes, unfortunately, when you spend Kurzick Faction an equal amount of Luxon Faction is lost and vice versa, until one of the two drops to zero. The only way to avoid this is to spend all of one type of faction on Jadeite or Amber before earning Faction from the other side. I earned over 7000 faction from each side in the preview event, but lost all my Luxon Faction by buying Amber after Factions was released. It would have been really helpful if Anet had announced this restriction ahead of Factions' release instead of leaving it as an unpleasant surprise.
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