This has now been fixed.
Fixed an issue that caused assigned loot bags in Karagga's Palace to distribute items with class inappropriate stats.
Players can no longer enter the opposing faction's safe base area, thus preventing players from continually "camping" the other faction's base.
Turrets inside faction bases were not intended to be destroyed and are now immune to damage.
The population cap for instances of Ilum has been reduced to improve performance.
Implemented optimizations to improve performance on Ilum.
Miscellaneous Bug Fixes
Loading screens no longer appear when other players spawn nearby.
Also, update from community manager:
Originally Posted by JovethGonzalez
I just wanted to be clear and let you all know that we're definitely aware of individuals who took extreme advantage of this situation and we will be carefully evaluating and taking action as necessary.
Posted on Friday, 20th January 2012