WHY IS MY IPOD TOUCH REASTORING BY ITSELF????????????????????/

I was typing in my password (because it was on sleep mode) and then it said wrong password. Then, it turned off. So, I turned it back on and it showed me the apple logo. After that, it said connect to itunes.
WHAT SHOULD I DO AND HOW DID THIS HAPPEN?
PLEASE HELP!!!!!!!!!!!!!!!!!!!!!!!!

Try a Restore as New...not from backup...
Backup and Set Up as New Device
http://support.apple.com/kb/HT4137

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