Those low prices on the market board...

[Tomoebi]

The rage over 1 gil undercuts baffles me, because it's among the most courteous, generous behavior towards the fellow seller that you'll see on the MB.

this true but i asked some people on my local ffxiv FB page, and some of them will just buy whatever in top.
although, from my experience if it has a good number of stack even though its more expensive people will buy it.

but 1 thing for sure is, if you undercut me by 1 gil. it means war, and with the power of the monetarist scum of the Great Ul i will destroy you.

When items that for years have been selling, and selling briskly, at 200-600k are now being sold for 20-40k, and in a lot of cases, less than vendor price, the economy is broke.

IMO, no one should overthink FFXIV economy, it doesnt follow real life logic. example a lumber that need 4 logs to craft, sold for the price of 2 logs.
then you said, why not just sell the logs instead of the lumber?
the answer is exp point, i assume some people just mindlessly grind the shit out of their crafter and sold the excess for really cheap. they got exp, and also got some of their money back, for some people this already worth it.

sometimes there is also a condition where there is more seller than buyer for a certain item at a certain time, and this will make the price crash. this happens a lot.