The naked midgets are the citizens of this bizarro Earth. Gravity has gone poof and only way of getting it back is spending a currency called FUN. FUN is obtained kicking the naked dudes in the ass, riding with them in speedboats, playing music and such. It's all very wacky and surrealistic. You can build your own boats, hot air balloons, planes, a la Nuts and Bolts, and you use those vehicles to make these guys have the time of their life.
It's done by the guys that developed russian masterpiece
The Void.