You're not doing anything wrong - there are two types of accounts:
- Local accounts: these are created here, and have both username and password.
- Newgrounds accounts: they have a username here, but the password is on Newgrounds.
When you connect through Newgrounds, it tells the game your username, as well as a very long number (your session ID, it changes every time you log in to Newgrounds). The server sends both of them to Newgrounds to ask if they're correct, and if so, logs you in.
Logging on to that username outside Newgrounds wouldn't work, because the server needs your session ID, which only the game client on Newgrounds is told. It knows your username, but not your password.
To fix this - generally, we can move characters from one of your accounts to another (for example, from a Newgrounds to a local account, and vice versa). No one asked for that before (for the reason I'll mention below), but to do that, file a support ticket ("Help" button) using the account you want to move the character away from, and mention the account you want to move the character to.
Note that if your character is moved, it is (obviously) no longer on your Newgrounds account. Also, you can only get Newgrounds medals while playing with a Newgrounds account - accounts created here do not award Newgrounds medals. So if you wanted them applied, eventually you'd have to move the character back (which is certainly possible, I take note what account the character is from).
The reason you're logged in to the website is that clicking any of the links in-game will send something similar to the session ID from before (meaning you're not actually directed to pawdgame.com/wiki, but pawdgame.com/wiki?sessionid=1234567890abcdef), which the website can use to log you in. It's not your actual session ID through (which is discarded after checking back with Newgrounds), so the game client on here cannot use that.
Hope that helps. ;P
