It comes from a MMORPG game called Guild Wars 2 which is one of the more popular fantasy roleplaying games. In this game there was a player who had built up a character called Darkside, who was harassing other players and basically being a huge pain throughout the online world. Unfortunately the character was also ultra powerful, building up lots of abilities and equipment through a series of hacks designed to exploit the games. Darkside was virtually impossible to kill, he could wipe out other players easily and had even the ability to teleport.
Some attempts were made to deal with Darkside by other players, however it appears he was just too powerful, so the players gathered evidence and submitted it to the Guild Wars security team.
However this last bit is unlikely to be that successful as the only real method for doing this is to block IP addresses which are easily changed either by switching ISP or using a proxy like this. This though would probably seriously deter many people.
Notwithstanding the public humiliation (1 million views on Youtube!), even with the hacks characters like these would probably take thousands of hours to develop. The reality is that it can take years to create but a digital character can be destroyed in two seconds. Certainly made me laugh and I think some sort of regular event should be considered..