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Loot lag refer to a character stuck condition that resulted from being unable to loot items during high latency or heavy server load.
During normal looting, the player's character would crouch down, during which the game client would request content of the loot from the game server. After the game client receives a response regarding the loot, it would show a loot window from which the player may loot some or all of the items. During high latency or heavy server traffic, the game client may have a delayed or an non-existent response from the server. In this situation, the player's character would be stuck in the crouched position and the player will not be able to cancel the looting process or receive the appropriate loot by normal means.
Depending on the severity of the problem, the player may or may not be able to continue with his/her game. During the worst situations, the game would not update until it receives the content of the loot. The player would not even know what is going on around them. However, more often, the game would update and the player would be able to engage in combat. However, after performing any actions, the character will awkwardly return to the crouched looting position.
This problem also occurs when attempt to use gathering skills. However, this was worsened by the fact that some herb or minerals in the game are bugged such that the player will become stuck even during normal latency and server load. This is often referred to as "cursed ore" or "cursed herb".
During certain conditions, the player will be able to unstuck by looting another corpse or gather another herb or mineral. Unfortunately, the only surefire remedy for this problem was for the player to reconnect.
The game mechanism has improved since then, although loot lag still exist. During recent months, when the problem occurs, it would often timeout and the player's character would return to standing position without receiving any loot.