A person(s) who mis-reads a question(s) on the internet and embarrasingly requests the definition, and - or, a person who replies wrongly to said question.
Person A: It's okay
Person B: I wish it was, talk another time. Bye.
Person A: What do you mean I wish it was talk another time?
Person A: You wish we could talk another time?
Person A: Ooooh, I'm a Red Muppet. You meant, you wish it was okay and we'll talk another time.
The term Red Muppet derives from the original term "Muppet", the term "Red" has been applied so that it conveys someone is embarrased and also a "Muppet".