Hi people, a quick update about the unfortunate lag and disconnection issues. We are aware of the problems, and we have been investigating the cause for the last couple of days. Good progress has been made, and we now know the cause and are working to fix it.
Meanwhile we have temporarily disabled PvP and losing items on death until the server is stable again. We apologize for the inconvenience, it is a frustrating situation, but we are working hard to get it fixed.