Wurmageddon is the term given to the complete server failure of the 25th of April, 2007. Requiring a total server restart, many players were distraught over their losses, although there was nothing the developers were able to do to rescue the maps.
In an attempt to compensate the enormous losses encountered by players, the developers decided to reimburse all the gold ever purchased by players, and include trinkets available from settlement tokens. Although a very generous act which reinforced the faith in the game for many players, there were a number of incidents in which players left the game altogether, unable to cope with the loss of their hard work.
After a period of around two weeks, the Home and Wild servers were resurrected, bringing a new map with much less water and a more mountainous landscape. Notch returned briefly to ensure all went smoothly. The restart brought in many new bug fixes, and many older players returned to view what Wurm had become.
It is contested that the Wurmageddon was actually a benefit to Wurm; the restart ushered in important bug fixes and new players. Many people relished the idea of starting over again, but many more were disheartened at the loss of their towns and their efforts. The long term impact of Wurmageddon is yet to be observed properly.