When I would 5 box the halfling quest in beta, at least one toon would be invisible in the group (showing out of zone) and not seen in the zone, but when I'd alt tab to a different client that character would see the toon in the zone and in the group.. so yeah that sounds possible.
It happened everytime I'd kill myself on the quest giver with all 5 toons at once then loading into misty.
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