Actually, Vanya Breeches require a hard hippogryph leather as well, which adds 9 animal fat into the mix, so break even should have been more than 850k. This guy also has a LOT of items posted (as in, one or two of every single item crafted by leather and cloth), and he's posting new ones as they sell, which means he would have had to have an inordinate amount of money (at current market prices, we're probably talking over 20m).

Also, if he's just liquidating stuff he brought from another server, why would he have brought the items required to make goldsmith i70 crafts when he didn't have goldsmith until a day or two ago?