Frustrated Koala was a hotfix released on December 10th, 2013. It was deployed the same day as Annoyed Koala, just a few days after the games initial beta launch. The hotfix primarily addressed issues with the old leveling system which had carried over, causing some weapons to be massively overpowered.
It was announced and changes were detailed on the developer blog shortly after release.
Corrected issues with the new leveling system that caused some weapons to have the stats of their old level (e.g. lvl 35), when there are only 10 levels in the game.
No character wipe was done, but if you want to use none overpowered items and worlds, best to make a new character.
- ↑ http://playstarbound.com/121013-patch-notes/