Balefire literally burns your thread completely out of the pattern. Everything your thread was responsible for just no longer "is" once you are burned out by balefire. It's why even the forsaken are scared of it.
However, I am pretty sure that it is mentioned that people are aware of the ripples caused by removing a thread from the pattern this way, in a sort of dejavu like way where they subconsciously know something is not quite how it used to be.
The thing with Matt is the question of if undoing his "death" from the Darkhound poison means he is treated as never having died in the first place in which case, the horn would still be bound to him, or if it counts as changing something that did happen, in which case the link to the horn is broken because he was dead and now isn't.
I would lean more towards the latter given the as mentioned subconscious feeling that he knows something was changed.

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