Wizard101 is just a kid's game, which wouldn't be totally incorrect. But if you thought that meant they would just let you do whatever you want... well, nope, not in this playground. KingsIsle Entertainment is demonstrating that they are more than willing to step in and take the reigns when they're aware of an exploit. In this instance, it looks as if an exploit was found regarding the new wings available in the game's cash shop that work as a mount. Players had found a way to purchase their wings via gold alone, getting an unfair advantage on those buying them legitimately.
So the game is clipping their wings -- clipping them off entirely, as it were. The wings will be removed from the player's account, all gold spent will be refunded to the player, and they will be reminded that exploiting the game client will lead to a permanent ban from the game. It's not the harshest penalty, but it comes as a stern reminder that no matter how fluffy the exterior might be, Wizard101 still takes cheating very seriously. So it's a bit more like school than you might have thought.