When you have an account with multiple toons (or multiple accounts with multiple toons, making this possible to do yourself...) a group can be maintined and DR logged out of with different toons without being kicked from the group in general. This lets two ppl with 2 toons each to start a group (or one person with two accounts each with a toon involved) then log out with their first toon (which stays in the group still just labeled as disconnected) then log back on with a different toon. Now the group is 4 "ppl" (really 2 ppl with two toons each involved in group), 2 that are now active and two that are "disconnected" but still registered in the group.
Now...the disconnected chars dont gain exp since theyre not logged on, but the game STILL DROPS LOOT FOR THEM! So these two ppl (or like i said before, one person with multiple accounts and toons) can now play through the lvls with two toons at a time (usually with a stronger char to help get "choice" loot for their lower alt) and switch back and forth as needed to collect their "planned" treasure.
The ppl with higher lvl toons that do this can easily "build" power equipped toons to use either in pve or pvp by having one extra account (like a mule account lots of ppl have), starting a group with their high lvl toon, and entering the group with their other(s) and then farm, farm ,farm bosses to get rbws and purples at an awesome rate (this is incidentally how some of the ?s and discussions of about how some players here on DR can farm for 4, 6, 10 rbws an hour...depending on luck for themselves and the speed at which this can occur (ie how long it takes them to kill certain bosses like abby).

This is obviously an issue with grouping and logging mechanics on the same account, and is letting ppl "powerfarm" themselves to better chars - which seems a bit dodgy in the realm of fairness and exploiting a "bug."
If successful you can build an awesome equipped toon in no time.
I know a selection of ppl that know this "bug" and use it often to build chars, and maybe they just dont see it as a bug among other "bugs" that have been pointed out, but i think it was time i said something to see how many ppl knew about it (if?) and if the devs were aware of its existence.

I know this is possible also and figured it to be a total exploit. However it sure was fun when I first figured out how to do it and created a full party, set it on extreme, and got my butt kicked my some pretty weak bosses. It's also pretty useful, though still exploitatious, to help newbs right out of Dew Valley get decent starting gear and afford lots of skills. I think something needs to be done about it for sure. Make it so the game automatically downscales the mobs when a player gets disconnected for over a minute maybe.

Is it a bug? I think most players know you can run multiple instances of the game, etc. In the end, who suffers? No one.

The issue is that lots of people have noted "bugs" that make it unfair as they see it to others when playing against them. This issue lets ppl make an alt char, get to lvl 10 or so to be useful, then powerfarm themselves to an excellent pvp toon - all rbwd up. That sure seems like an exploit when looked at it that way. Also, for ppl who dont have multiple accounts, this gives those that do the ability to build better chars in general.
Im not thoroughly upset about it or anything, just wanted to bring to light so the proper ppl make a decision about the "fairness" of the ability to do it or not, or if they realize stuff drops for ppl who are disconnected in a group.

Last time I checked, while it is true disconnected people still provide extra loot, the loot also continues to exist under THEIR name. You won't be able to pick them up at all. And, if you do the log into the disconnected toons thing to get loot, well I think overall it will be MORE troublesome than it's worth.