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I turned pink once yesterday while landing on a property...
I remember this one time I turned pink. I was at a skill house. A LOT of people were turning pink, and the skill house was having issues with bookshelves and couches splitting into two pieces. This was pre-EALAND, it may have been in TC3's early days. The only reason I bring this up is maybe the "pinkification" is related to broken objects.
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This bug is older than TC3, I remember it back in BF a long time ago. I think then though you saw when someone turned pink, and it wasn't just the one turning pink seeing it...I don't know, I've been playing too long, I even remember when dying came out in TC back in the day (and you were stuck being dead because revive didn't work) lol.