All people on s146 would've been booted off. The network connection to the physical server was broken. There were other servers where the network connection to the game server was still up, and the only thing that went down was the network connection to the login servers, which are located in the same facility as s146 is located.
Please look at the server rollback thread. In that thread I explain what happened and how your experience differs based on where your game server is physically located.



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