It has happened few times now and it seems to happen if I reconnect to server that has just restarted (trying to get back to the server too fast). What happens is that if you get stuck for a while to "Please wait" screen you get message that server was unable to load your character from database and please connect again. Well, you reconnect to that server (or any other server) you start with a fresh character. Today I went to see if my character had spawned in to my last current location and it was not there. Your character gets totally wiped if this happens.

Just to be sure, don't try to reconnect to server right away / wait a little while.