Alright, I was farming Krampus sacks as Wicker with some other players by reading Birds of the World twice and then Sleepytime Stories. We would then kill all the birds to get Krampi to spawn. I was then I decided to use Sleepytime Stories again to put the Krampi to sleep. This is where the bug occurred. Another player and I both attacked one of the Krampi. After about 10 hits, we realized it was bugged, and not dying. After clearing the other Krampi, we found a few interesting traits of this frozen one.
1: It cannot move, attack, be killed, or jump in its bag.
2: It is server side, as we are able to examine it as well as wear our weapons down by attacking it. It also scared birds.
3: Its animations still work--It flinches when hit, and sleeps at night.
4: The only way we got it unfrozen was telelocating it, where it became regular again.
And yes, I did submit a bug report about this.