Client log: http://pastebin.com/wP9VQSVX
Crash in game: http://i.imgur.com/LlQxG3h.png
Video of what happens: https://www.youtube.com/watch?v=A6skISZLq7Y&feature=youtu.be

A player on my creative server said this in chat - "GrannyHunter > I kick all players at spawn" So me being curious, teleported and got kicked with that "Badly compressed packet" message. This only occurred when the user GrannyHunter was at spawn, items can't be dropped at spawn and it couldn't have been an item near spawn because as soon as this player left no one crashed which leads me to think he has some sort of item causing this. I've had the server crashing recently but I've got no idea if the server crashing has anything to do with these items but I'll post them in case they are of some type of help.

Log 1: http://pastebin.com/ptmr3QjG
Log 2: http://pastebin.com/smaz825Y
Log 3: http://pastebin.com/QmRGf9qv
(Log 3 generated a crash report)
Crash report for Log 3: http://pastebin.com/JAaz4GzJ