Why undercut by a 1,000+??

[Shirai]

I get the whole thing with undercutting. Everyone wants to sell their items first. But some are just ridiculous and it shows that they don't know anything about the market value of the items. For Example I'm making HQ 2 star Gryphonskin items for about 40-50k a piece. Someone waltz's in and put up 5 of the same item for 29k.

This is not "not knowing the value", this is attempting to push the competition out of the market.
Albeit not very effective.

Aside from that, as you yourself are also saying; The two star market is a slow one as it is so putting up five at a time even at that low price is just idiotic.