Well hello, It seems im not the only one that this has happened too. I’ve contacted microsoft and Turn 10. And they’ve told me to post here 
So my local data has reset, So I kept rebooting the console, My cloud save had all of my data. I tried to load the cloud save but it kept loading so I rebooted.
After rebooting the console a few times I was given a screen about which save to load and I noticed that the saves had the same date. I tried the cloud data and it was a fresh empty.
I am wondering is there any way that I will be able to get my save back or recover my old Forza Horizon 2 cloud save or Profile…
I have spoken to microsoft support and they have given me this Reference number : 1323708014
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When the save in the cloud is fine, you have to reset your console and/or erase your profile and all game-data.
The question is: Do you start a new game and save it`?
[Mod Edit - Abbreviated profanity, profanity and profanity that is disguised but still alludes to the words are not permitted - D]
In this case you have to start all over - sorry! Next time you know what to do!
Im sure my old cloud save is backed up somewhere with microsoft
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spoke to MS earlier , they claim that there is no backup , as the save is overwritten every time you play the game ! Absolutely ridiculous.
Yes, that is right - that is why you have to quit the game in the dashboard and wait while the savegame is uploading. The time to upload the file depends on the upload-speeed of your internet-connection (ADSL2+ and 8mb about 2min).