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My thoughts on vendors were always that new items should load from the top and push the old items down. Instead of the item going on the bottom and filling in an empty slot if any are open or poofing, that the new item would take the first slot available for player sold items and "push" all other items down 1 slot or pushing the oldest thing sitting on the vendor off if the vendor was full. This way you would not lose the "good" stuff as it would be on top for folks to buy but have the useless crap no one buys drop off and poof.
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