why doesn't a yo-yo come back to its original height?

Does a yo-yo lose all its translational kinetic energy when it reaches the bottom and turns around?

It seems at the bottom the string should give the axle of the yo-yo a violent tug, so maybe some of the translational kinetic energy is converted to rotational kinetic energy and is not lost as tension waves in the string?

Or is all translational kinetic energy lost, and what causes the yo-yo to climb is a conversion of its remaining energy (rotational) to gravitational potential energy?