Can't reboot Picade

I am wondering if this is by design or I am missing something, but when I run ‘reboot’ via the console the Picade just shuts down. I have to hold the picade hat power button to power it up again.

Is there a way to reboot it without having to powering it up again?

I don’t own one, but I’d say its likely a side effect of the way it was designed to work. It has the equivalent of the On Off Shim built into it. On shutdown the Hat removes power to the Pi and anything else connected to it like the Plasma Lights. It just can’t tell the difference between shutdown and reboot. It’s getting the power kill signal on GPIO 4 so that’s what it does. You’d have to disable the Daemon while tinkering, then reenable it when going back to game play.
The Pi knows what its doing but the Hat has no way to tell the difference. And once it removes power the Pi can’t finish the reboot.
Picade X HAT at Raspberry Pi GPIO Pinout

Have a look see here, picade-hat/picade.txt at master · pimoroni/picade-hat (github.com)
nopoweroff disable asserting BCM4 on shutdown

It will be difficult to disable the overlay while it is running. It would require to change the overlay functiojn to disable the power button then shutdown. Power it back up via the power button, and then I can use the reboot command. But I am not sure that disabling the power button would stop it from shutting down since it can still monitor the GPIO pin.

I think there is a missing mechanism where the overlay can be told to not look for GPIO 4 when doing the reboot command.

Yeah, I’m not sure what disabling the Power Button actually does. It may just stop it monitoring GPIO 17 to see if the button has been pressed. If that’s all it does its not going to help you much.
I think the nopoweroff option will do what you want. It’s just a PITA to have to do a dtoverlay edit to enable it.