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".