Important Rule: Never, ever delete a system file without knowing what it does. Rename it instead, then you can restore it if it turns out to be important
Quote:
The utmp file allows one to discover information about who
is currently using the system. There may be more users
currently using the system, because not all programs use
utmp logging.
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There's plenty of stuff of Google about restoring a deleted or corrupted utmp. Lucky, eh?