Price Collapse Continues

I logged in this morning to check on my orders, and several more items have seen their price drastically drop overnight. And by drastically drop, I mean 50%. These are items that were selling well at their pre-drop price level. I'm struggling to understand the logic behind these moves. I can only think of three reasons why this would happen.

First, I know that there are some traders that feel that large price drops are the way to go. They feel deep undercuts discourage other traders from following in cuts, because they hope these items will sell quickly so they can resume their previous level of sales. Also, they hope that the deep cuts will increase demand.

Second, some traders want to get out of the market, so they'll undercut very deeply in hopes that another trader will pick up their item to resell it at the average price. I know I've done so once or twice, when I had an item or two left that I wanted to get rid of.

Third, they're bots. When one trader drops the price for one of the reasons mentioned above, the bot automatically undercuts.

I see this happening on items from time to time. It's inevitable, given the amount of orders I manage. But what's concerning though is that this is happening on multiple items. That, I've never seen before. Is this part of a broader trend?

And more importantly, what can I do about it? First, I can continue restricting myself to the best deals. The deals I find are so good that I can absorb large cuts, and only the deepest undercuts will cause losses on my side (which I can usually absorb with the gains I've made on other deals). Second, I can continue diversifying. That way, if a few deals go bad, I still have enough good deals to make up for them. Third, I can try being patient. Some of the items only have one large undercut. If the other traders can be patient as well, we may be able to wait until the under-cutter's order is sold out, and we can resume trading at the higher price.

I'll need to keep an eye on this. I may want to termporarily put trading on hold if this is a market correction.

Bonehead Move of the Day
A typo in the price is a fairly common mistake, and today, I made that mistake. Instead of typing 1,199,999.00, I typed in 199,999.00. On a lot of 2 items. Poof, 2,000,000 loss.

Not a good day for trading.