This isn't a rare bug to find, and I bet many other people have found it, but when I logged on I found my characters wearing red default clothing for Wizard101. Why is there a template for Wizard101 on Pirate101? Please fix! Sooo weird!
If you see something showing up in all red, this usually means the texture associated with that object didn't load. This might be a loading issue, and some players have found restarting will sometimes take care of the red object.