The event is pretty simple. Each player participating is warped into a smallish (4x4 or so) gmap, and is given a temporary Game Net (this is the same as a regular bug net, but is there so even players without nets can participate). They're frozen for ten seconds or so, and after a warning they (and the bugs) are released. The players run around trying to catch the most bugs as possible. In the case of a tie, a new round is started with the same people.
For prizes, a hat would suffice. Maybe if it wasn't too boring there could be tournaments where the winner gets a golden net. Or something. I'd say this for the regular reward but then they wouldn't be special.
Probably not the most fun event you can have, but, hey, we have hide and seek. Just wanted to get it out there. Gives something to do for the players that miss bug catching already. Could call it bug frenzy, or something.