You died. It happens but do not worry because you will wake up in the last inn that you checked in at. Your loose some xp. Your sole is where you died. Getting back to it regains half of the xp that you lost.
Your stuff in the bag is also by the sole unless it gets destryed if you got killed on spikes. If the server restarts your stuff will also be gone.
Maybe you also loose some combat and job skill.
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