Worst fight of my life, trapped in a small arena, three heroes spawning at a time and the screen is covered in loot tooltips
Yes, you can. Go to Options - Keybinding - See a button assigned to “Toggle Hide All items (Loot Filter)” option. With it you can turn off all the loot (except for purple materials).
Yup, just don’t forget to turn it back on when you’re done! 
Also if items on the ground are bugging you and you don’t want to manually hide before every fight (and then forget to make them visible for a few minutes and need to go back for the missed loot <- my case) you can automate it with scripts, for example hide items if and only if you hold the left button or hide items for 5 seconds after casting Cursing of Frailty or something like that.
Awesome, thank you! I have had this problem over and over again!
You are welcome 
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