This was a freakish incident that occurred last night.
My character (Lisassa Phen) was running through the Starwood to catch up to Leged. I was hit by an arrow, and the combat music started playing. I clicked on my quickbar to drink a potion. Then the screen hung for about 5 seconds, and the next thing I know, my character was running straight for the wall about a quadrant away in the same area, completely naked and without any of my gear, and about the same amount of hit points I had when I was hit by the arrow.
I ran back to where I was before it happened, to find my corpse and pack lying there; I presume Leged had killed the orcs that were firing the arrows. MindMaster referred to this as a "double-death glitch". We couldn't get a hold of a DM, so he suggested I relog to see if it would fix it. He also said that I might lose my stuff upon relogging, so I removed what was on my corpse, put it into my pack and logged out. When I logged back in, my corpse disappeared, but I was still standing there in the Starwood. I admit I was spastic, and I had forgotten to check my combat log before logging out. When I came back in, it said "Lisassa Phen has killed someone". I was also still holding my gold from while messing with my pack, which sure enough disappeared too upon relogging. We decided to have Leged hold my stuff until we could get a DM.
While he was gathering my pack, I finally got a hold of Wern8 on IRC. He came IG and ported me to fugue, brought me back to the Starwood it looked like it was fixed.
Common death bug that is now, thankfully, not so common. If this occurs to anyone DON'T pick up your stuff and try to pretend it didn't happen. Not only is this cheating (!!!), but clean-up scripts in place as part of the death system will erase all your gear and eventually put you back in the fugue. And we'll be inclined to leave it that way.