PokéBase - Pokémon Q&A
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So this is a tad complicated.... I'll explain via an example.

Let's say I had a Snorlax with the move return. Snorlax's happiness value is maxed (i.e. Return has maximum base power). If I trade Snorlax to a friend, and then back in Gen 6, then the happiness value is restored to the value that I left off with Snorlax before I traded it to my friend (so return still has maximum base power).

However, let's change the situation so that Snorlax is now being deposited in the Gen 6 GTS because I want a Lv.1 Magikarp. When I realize that depositing it for Magikarp is stupid, I will take Snorlax back out of the GTS deposit. Does Snorlax still have maxed happiness value (i.e. Return still has maximum base power)?

There are two variables that determine the answer.
1. Does it count as trading?
2. Does it follow the same rules as other forms of trading?

My research from other sites has brought up surprising results (which is why I'm asking this here). It appears that the happiness is reset according to other likely unreliable sources.

Also, if anyone happens to know if this worked differently before the previous owner happiness rule introduced in Gen 6, then this is a convenient place to post findings.

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Snorlax will have the same happiness value. According to Bulbapedia:

>Reset to base friendship (if traded back to the Original Trainer, friendship is instead restored to the value it had before being traded away)

This implies that if the Pokemon is returned back to the original trainer, happiness would reset to the value it had before being traded away. Considering if the GTS deposit being a trade or not would not affect this outcome, for Generation 6.

As for the other generations, it is necessary to consider if the GTS deposit counts as a trade. One may assume it does, especially in Generation 4, where the trading glitch was exploited to obtain Pokemon such as Alakazam and Machamp without actually trading.

So it's likely that it would have reset, but there's currently no way to be sure with Nintendo WFC down for DS games.

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