The more frightening consequence of this bug is the deletion of user-created content. "I lost four costumes and she lost all 12 of her saved costumes, as well as losing the level status. Also we found that all of our community and saved photos were erased too," says justsayno2girls. Some are theorizing that the glitch is caused by bloated profile data. Since the release of the game, players have collected tons of objects from community members. The MGS pack also adds a large amount of data to one's profile. The game may be automatically deleting content when a profile gets too large.
Considering its the holiday season right now, Media Molecule hasn't offered an update on the situation, but we're certain they'll work on a patch in the coming weeks. However, we'd recommend that users avoid creating new levels for now -- we wouldn't want anyone to lose a level they worked on.
[Thanks, Terry W.!]