Adding to Loirae's post, I've got a small list of what this glitch affects.
CHARACTERS
Morklin
Wysp
Red Top hat Guy (Harbor, I think I'm the only one with this)
Pirate(Harbor, Me only I think)
Red Baseball cap guy (Sunflower field, with red gate, only me I think)
Wee Stinkers around red baseball cap guy (again, only me)
Sunflower guy (near red baseball cap guy, again, only me)
OBJECTS
Random trees (Foggy mountains, again, only me)
Random rocks (again, only me)
Random mushrooms (again, only me)
Random Signs
MS told me in a PM that he thinks he deleted the topic.
Unfortunately, you need to talk to Morklin to get a pink key to advance, but you can only get a working one from morklin.

Sonic In Super Smash Bros. Brawl? NO WAI