I guess everything is stored like on a MySQL database. A MySQL database's structure is very simple: it has a series of columns named "Name | skill1 | skill2 | str | etc." and every line would have "Timanel | 6,13 | 4,35 | 103 | etc.". So it would be very easy to empty the column skill1, skill2, str, etc. with a simple script or even a simple command ...
It may be easy to empty the stats, but it's not a good idea. Imain starting with 0 strength (inability to do damage), 0 health (countinuious, and instantanious death), etc.

Besides, at the character creation process, you get a unique set of stats depending on what you spent your CP on. Unless these initial stats can be reinstated into the character (and easily), It wouldn't probably be more likely that they'll just clear the data base, and let the players recreate their characters how they want.
We could say that Laanx came down and announced that everyone was getting far too greedy and to teach them a lesson he destroyed all their weapons, armor, money, etc. and made them forget all their combat knowledge.
Typical god-like character. Someone messes up, and all of humanity is punished.

Not a bad Idea though. It would fit in well considering how after the wipe, more players will come, they'll start being "bad", and there will be more wipes to come. It even has some truth to it, since the more bugged items are used, exploits exploited, etc, the sooner a wipe will occur.
I supose in theory, if every player played nice, reported exploits, handed over bugged equiptment, limited PLingand never gained/used an unfair advantage against another player, a wipe would not be neccessary, hence we would be "pleasing the gods". Of course this won't happen on an absolute scale, so we will "incure the rath of the gods", and the wipe will take place.

Quite tidy.
BTW, what's wrong with gods rath being in the form of mist? No one seems to like the mist.

EDIT: The thought just occured to me, what would happen if we tried to have an amnesty day, where the dev's/GM's would demand the overly powerfull items/people with stats "so high" come forward, and if sufficient people did so, a wipe wouldn't be neccessary?

...or are the technical reasons for a wipe?