I'm not certain what caused this, but after logging off near the alchemizer in the bazaar, I'm unable to log in to the game without crashing. The first time I logged in with this issue, I was shown a house in the bazaar, not my character, and there was nobody else to be seen. Once I tried to move, my game crashed. I logged in and saw the house again, and thought maybe if I got into a PVP match I'd be fine.
After joining a Blast Network game, I was presented with an overhead view of the arena and once again could not see my or other peoples characters. I left, and then was unable to log in without the client locking up completely. Since then, I've uninstalled Java, uninstalled Spiral Knights, deleted both of their local appdata, re-installed both of them, and the issue still exists.
I tried making a new character, and encountered a similar problem. The game didn't crash. Instead, it showed the initial tutorial screen, the drop pod, and nothing else. I could move my character, but I could not see it not anything else. The game refused to load anything else. See this screenshot, noting my character's place on the map.