Shoddy Battle is open source. Therefore, you can download the source code anytime you want, compile, and see out it runs. So no, Shoddy Battle 2 isn't out yet.
In regards to the OP, it seems like some code is missing. I don't know, but it's my best guess.
Are there any errors in the Client?
Something like this was happening to me.....I just had to update my Java to the latest one and it started working.