That is unusual. A password reset can force a reboot of the droplet. If your nginx was proxying for another service like node.js/ruby or something else, make sure that the underlying service is running and restart it if it is not.

So basically, mine was a Django project.After resetting my root password, I re-activated my virtual environment and restarted nginx and gunicorn.This solved my error.

Nginx restart : sudo service nginx restart
Gunicorn restart : gunicorn –reload <your wsgi folder name>.wsgi —bind 0.0.0.0:8000