I know a few people that it's happened to, and I had it happen also at the start of Kunark.
Your exp just stops. No gains whatsoever, and you have to log out and come back to to get it started again. You don't get the exp from what you "missed" from logging in and out. It's gone. Pretty much everyone I know randomly watch their exp bar because of this happening.
I'd say fewer than 20 people have seen this happen that I know of personally. So who knows. It's happened to be twice, and I have never figured out how to reproduce it.
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