When over encumbered, if you unequip a tool, you are able to move at full speed, even while over-encumbered. I was unable to reproduce this bug in local game play
Reproduction Steps:
Start Local game (unsure if this is repeatable on a public server)
Equip Hardened Steel pick
Mine for Star Metal Ore
Become over-encumbered
Hit “X” key to unequip pick
Bug: Character can now move at full speed as if unencumbered.
Had the opposite happen to me. I was encumbered carrying a Jaguar with my torch equipped. When I put the Jaguar into my animal pen my encumber percentage went down to around 82% but I was still only able to walk like I was over-encumbered. Once I put the torch away I could walk normally again.