This is certainly one of the more crazy bugs we have ever seen - however, there is a way to save your character from their stony fate:
- To fix this, your character needs to be killed in game. Once you respawn, save & exit, this should clear up this bug for good on that character.
- How you do this is up to you, though for those players that spawned into a giant home base where spawns are rare and you have tons of NPCs to protect you, that may be difficult.
- If this is your situation, we suggest making a new world, taking that character into that new world, removing all of your armor, and letting the slime horde (or zombies at night) kill you off.
- Again, after you die and respawn, things should be cleared up for that character.
Alternatively, we have heard from players that this effect wears off in 5-10 minutes if you would rather just wait it out.