Updates to Terraria have been released. The updates will be applied automatically when your Steam client is restarted. The major changes include:

Bug Fixes / Performance:
- Reduced the amount of RAM needed to run Terraria.
- Added an option to turn backgrounds off.
- Improved the automatic game quality adjuster.
- Lighting update won't skip as much on lower quality levels.
- Items dropped on death for hardcore and mediumcore characters will retain their conditions.
- Space Gun now has a value.
- Water Bolt can now have conditions.
- Diving Helmet now works correctly.
- Walls now correctly show behind Glass Blocks.
- You can now untie bound NPC's with Autopause enabled.
- Mediumcore and hardcore players will drop their cursor item on death.
- Coins held on the cursor will correctly be dropped on death.
- Dryad's Corruption and Hallow status numbers are correct.
- Wyverns are less common and will be less likely to spawn near the ground.
- Mana Flower's price has been increased.
- Fixed the shadow glitch of trippy lighting.
- Music Boxes no longer dupe when placed on platforms.
- Fixed an issue that caused stacked coins to go missing from chests during multiplayer.
- Cursed Torch item now emits light in water.
- Harpoon can now be reforged.
- Lighting will now be set to Retro instead of crashing if Terraria is unable to switch to the new lighting mode.
- Keybindings will no longer sometimes be set to "None" automatically.
- Bombs thrown by clowns will now show that the wall has been destroyed in multiplayer.
- Crystal Shards now give off light in retro and white color mode.
- Hallowed Armor only has graphical effects with the helmet.
- Players now have hair under their hats.
- Statues no longer turn into Armor Statues when they are smashed from the top.
- Clowns only throw bombs when their target is alive.

Items
- Added Candy Cane Blocks & Walls.
- Added Green Candy Cane Blocks & Walls.
- Added Snow Blocks.
- Added Snow Bricks & Walls.
- Added Red, Green, and Blue Lights.
- Added Presents that are dropped by monsters during the holiday season.
- Added Snow Globe.
- Added Santa’s Outfit.

NPC's
- Added Snowman Gangsta.
- Added Mister Stabby.
- Added Snow Balla.
- Added Santa Claus.

World
- Snow biomes will always be created during world gen during the holiday season. There is a 1 in 3 chance for snow biomes to be created during world gen during the rest of the year.

More...