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Since most characters are distributed in archive files which can be easily uploaded to any website, certain individuals have downloaded the characters from the original author and uploaded the package to another website, often a file-sharing site like 4shared. This is often done en masse so as to create a large archive of characters, from which the term "warehouse" is derived.
Ethicality of Warehousing
In general, the M.U.G.E.N community frowns upon warehousing, as it often results in the author not being acknowledged before the character is downloaded and losing control over the ability to control the Character Status of his releases. In response, certain authors (most notably Zelgadis) have gone to lengths such as adding passwords to their files (which are prominently displayed on their character release posts), so as to ensure that the character can only be attained through the official channel.
However, in recent years, the sites of old creators have been beginning to drop off the web, often because their hosting services have gone down. As such, the M.U.G.E.N community is often prepared to carve out a special exception for these cases where characters are at risk of going offline due to neglect or hosting issues (and not the author's choice).