The Naomi Incident refers to an occurrence in January of 2016. A glitch occurred that caused the standard site couriers to be replaced by Naomi, a single fae dragon within an inactive lair. (At the time, all AH goods were delivered via the message system by a set of NPC dragons.) This affected all messages normally sent by these NPC across the site.

So, she started popping up all over. When investigated by clicking on her name it would direct you to her page where her ID was #0. The user's lair had a dragon count far exceeding any number of dragons possible, even though she was the only dragon visible in her lair. Most believed that the number was of exalted dragons and her account had become a data drop for exalted dragons. She gained a cult following and is considered by some players a part of the lore of FR and the setting. Adding to this was also the fact she was an arcane dragon, and the arcane flight is known for dealing in strange magics and often throw caution to the wind in their pursuit of knowledge which strengthened the idea of a corrupted arcane dragon glitching out the website.

She had several children, which were all exalted, save one: Willow. It is through Willow that Naomi's bloodline is available to the general player base. The owner of Willow is extremely protective of them, and as of writing, no longer breeds them.

For most Naomi's descendants are a symbol and part of wanting to keep the story alive, as well as having a dragon related to the fae dragon who caused so much chaos. Some might seek them out for lore reasons, or as a collector's oddity.

Here is the original forum thread with the bug report, for whoever wants to see:
http://www1.flightrising.com/forums/bug/1728692#post_1728692