One of the oldest and most well-known rumors in the game was that the Iceberg to the northeast of Club Penguin Island could be tipped over if enough penguins stood on one side of it, or if enough penguins used the Jackhammer 3000 on the Iceberg by wearing the Hard Hat. However, this rumor was false and was never actually implemented into the game for most of its run.

From January 31 until the date of the game's shutdown on March 30, 2017, the Waddle on Party was held. As part of the celebrations, the developers decided to actually program and code the Iceberg so it could tip over. This was hinted at by one of the game's community managers, who revealed in the comments section of a blogpost detailing the Waddle on Party that "penguins could discover a special secret". The Iceberg could be tipped if at least 5 players in the room were wearing the color Blue, walking a Blue Puffle or any of its variants, and dancing while wearing a Hard Hat. If only 2 to 4 penguins fulfilled this criteria, the Iceberg would just shake. When enough penguins manage to tip it, the Iceberg would completely flip over, revealing a large dance floor, a bin of free Iceberg Tipper hats, a buoy numbered 11 frozen in the ice, and a plaque surrounded by many carvings and an inscription on it that read: