If you are using a Badly Damaged shovel to build a "Fence Base" and the shovel goes Ruined in the process, the character will freeze in that animation while getting it's head stuck inside it's body.

You are frozen in that position with the progress circle showing full all the time. You can easily get out of that state by pressing right click or something, I can't really remember the exact key.

Couple pics showing what it looked like.