Think of a beta as a giant, messy sandbox. Developers let a few thousand wild gamers in to break everything. A “character wipe” means they bulldoze that sandbox and start fresh.
It happens when a game is still in development. They need to test the starting experience, not just the endgame. None of your progress was ever meant to be permanent.
For players, it’s a bittersweet punchline. You grind for weeks, only to become a soulless placeholder for data collection. But hey, your sacrifice lets the devs fix that floaty ladder glitch.