With the incredible amount of players we see per wipe (as of the time of this writing that is almost 2,000 per wipe) town can get incredibly crowded with players logging out. It had become a massive problem in which there would be piles of dozens of players all logged out in town which can cause client side lag for others and honestly just looks dumb seeing piles of sleeping players in one place. Furthermore it left a lot of invincible targets for PVP day since Town is a safe zone.
For those reasons we currently eject all sleepers from town. It is set to 1 hour intervals so that if you get disconnected temporarily you do not wind up dead by the time you log back in.
We advise all players to log out safely in their own base, away from exterior walls or windows (rogue patrol heli, or angry zombie horde can harm you).