On official pve servers they cannot loot your body, but what they can do is skin your body so your loot turns into a bag, they still cannot loot this bag, however your lootbag is now on a much shorter timer than if your body was left intact, my guess is this is what happened - Otherwise it would have to be a glitch.

Sorry to hear this happened, but even on pve servers there are people trying to sort of pvp by making people suffer just because they can.

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