Besides feeding your worms, have you added any bedding during the past year? If you're collecting that much water, I suspect your bin is too wet. You'll need to add more bedding (newspaper, cardboard, paper egg carton, etc.). There may be a possibility that you are overfeeding your reduced worm population which would only contribute to the unfavorable environment over time.

<it looks wet and no possibility of rain intruding the bin.>

Is the bin inside or outside?

Where on this glorious planet are you located?

I am located in San Francisco bay area. Bin is outside, but well covered. It has upper tray that I use for spare bedding and that is dry. Only worm area looks wet

What bedding are you using and how broken down is it? Bedding that is fully broken down is hard to dry outand makes the worms act as described. Have you ever harvasted the compost? If you can't look in and easily tell what the bedding material is look into harvasting the castings and starting over with fresh bedding. Might want to do that anyway if you can't get it figured out.

@confused545 - Thanks for the suggestions. Bedding comprises of packing boxes and shredded bills. No glossy papers. Yesterday, I took the efforts to harvest the bin. Top layer was not consumed, but bottom layer was nearly gone. This was my knee jerk reaction to seeing worm balls as something was definitely not right.

I'll monitor the bin daily and keep an eye on it.

I wouldn't monitor daily; worms don't like being disturbed too much. Maybe try twice a week until things seem to be recovering, then back off to once a week, then every other week, until you're pretty much just leaving them to their own devices in a system you know is OK.

I am not sure what the original question is here?

Can we assume you are talking about eisenia fetida worms?

<I do know that worms forming balls means they are stressed for some reason -> Could they be out of food? What exactly are you feeding the "worms"? Could the extra moisture be coming from the food?

@Jon,How about feeding worms? I tend to feed scraps almost every day. But usually that's a quick operation and does not involve any other operation except quickly hiding the food and quick look at the status. That's what I was planning to do.

@gumby_ct, I have usual red worms, I feed them kitchen scraps - all veggies and no meat or dairy products. Typical diet consists of peelings/stems of various veggies and usually food is finished properly. I am curious because, I never had this problem - same/similar food for long time as families dietary habits are more or less same. Besides many sites indicate red worms start forming a ball when they are stressed.

<I am curious because, I never had this problem> Not understanding what "this problem" is - is the problem too much moisture?

Yes, bin seems to be wet and worms seem to be getting stressed

I don't think dropping in small scraps like a few cucumber peels directly on top as they turn up, with no digging, is a problem. If you're spending a lot of time near the bin, or digging into it to look or to bury, you might want to cut that down. Remember that vibration can make them think a predator is coming to get them, and that kind of stress isn't conducive to relaxing to eat and breed.