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As was previously stated, this is not a hack. This is simply the game being in Alpha. If you get knocked out but not killed and log out fast enough then log back in. You will be full HP and in same gear. Test it out. Jump off a ledge that breaks your legs then log out and in. You will be fine. I have done this and found this out completely by accident when i fell off a balcony and broke my legs lol.
I agree with every post in this thread so far. The only change i have is how to fix it. I think THE best way i have seen to negate server hopping is adding a timer like people have already suggested, however this timer does not kill you for changing servers too frequently or lock you out of servers for a timelimit. Instead if you log out of a server and back in within a 30 minute (or w/e a good amount of time is) you will be randomly respawned somewhere in the world. This way people can't just camp one spot on multiple servers. But you arent penalized for swapping to a friends server or looking for a daytime server.