What does it mean:
You are using HSQL DB, which is an in-memory database and susceptible to corruption when abnormally terminated. DO NOT USE THIS IN A PRODUCTION SYSTEM. Instead we recommend using an external database, for a list of supported databases please see our documentation.
The quicker way would be to export your instance to XML and set up a new production JIRA connected to a proper database, like PostgreSQL, MySQL, Oracle or MSSQL and finally reimport your XML again.
Everything is very detailed on this KB.
It means do not use HSQLDB for production systems.
JIRA ships with a built-in HSQLDB (HyperSQL DataBase) database. While this database is suitable for evaluation purposes, it is susceptible to data loss during system crashes. Hence, for production environments we strongly recommend that you configure JIRA to use an external database.
The list of supported databases means Atlassian tests out their products and supports those databases. It does not mean all databases should be used for production. In fact, Atlassian makes it very clear, HSQLDB should not be used.
What happens if you use an unsupported database, you could have support deny you fixing your problem unless you can show the problem exists on a supported database.
One thing it doesn't explicitly mention - HSQL in Jira can sometimes fail catastrophically and without warning. That can be ok in a test system, as they can be "throwaway" and are usually rebuilt from standard test data or copies, but it's not acceptable in production. Seriously, use another database, as it advises.
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