Scenario 1: You just made an easy 175k, you should be happy

Scenario 2: you are attributing to the undercutting war just as much as the other guy. Sounds like you should be patient instead of adding the the undercutting war. This will happen with items that have little demand. Some people take taxes into account when undercutting and want to be the lowest price no matter what nation the buyer is buying from, so 1 gil is not always the most sensible option.

But yeah everybody is only "sensable" if they agree with you, good one.