Mass is an invariant. What increases, without bound, is momentum. BTW in geometric units it's E=M. The c^2 is for converting conventional units of mass, kg, to conventional unit energy, Joule. kg m^2 s^-2. c^2 has nothing to do with the speed of light. c^2 isn't a speed. Another BTW: the capital C is the symbol for coulomb.In this case one must consider the equivalence of energy and mass. The objects lost kinetic energy, but due to E = MC² this is much the same as a mass loss.
E.g. Photons have no mass if at rest, but the energy that they have when moving at speed of light, makes the behave as if they had a mass. Gravity can attract photons, even if they don't have a mass while not moving - all their mass comes from their energy.
And yes, objects become "heavier" if they accelerate (e.g. they gain mass by gaining energy). This has been confirmed in experiments.
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