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I was reading an article about there being 2 types of Gamemaster outfit "Red cape" and "Blue cape" and they mentioned that only red cape GMs could create items. Is there any more information about this?

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The names used for these positions changed over the years, hence the confusion. But in short: Blue Cape GMs were Volunteer GMs, regular players that were promoted from Tutorship to GM. Red Capes were CipSoft employees logged in special characters with extra powers, such as summoning creatures and creating items.

Due to that very specific confusion, CipSoft later started using CM for CipSoft employees and GM only for Volunteers. Later on the CM tag was restricted to the actual Community Management department (the employees we usually see in the Auditorium), because the other "CM"s were actually part of the Customer Support department. That change happened in a moment CipSoft stopped enforcing rules in game manually, and eventually they pretty much dropped the tags for new characters.
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