$1200 could certainly mean a lot to many people these days. Especially if this guy is out if work and selling these cards to make ends meet. Obviously the honorable thing to do (aside from honoring the original agreement) would have been to admit he priced it too low and offer it to you for what he was willing to accept.
I'm not sure one isolated incident from someone who is obviously not part of our hobby has anything to do with the overall state of the hobby as the OP suggests.
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Successful transactions with peter spaeth, don's cards, vwtdi, wolf441, 111gecko, Clydewally, Jim, SPMIDD, MattyC, jmb, botn, E107collector, begsu1013, and a few others.
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