I'm gonna walk into the Lion's Den.
I'm your typical undercutter. And more often then none, I ALWAYS do it. I just recently single handedly drove the price of Fish Mithakbob's on my server to nearly 1/2 the price they were before.
I flooded the market with em. I had approximately 40 stacks of em after crafting 5 stacks of Nebi's. 5 stacks. And I had 15 stacks of Nebi's on me. I'm leveling fishing so Nebi's are my current target fish for skill ups, hence why I had no many.
Needless to say I wasn't going to wait patiently for all 40 stacks to sell. I undercut the price as much as 1k at a time when the original price was 9k, eventually the mithkabobs dropped down to 4,000 after I undercut the undercutters. The prices rebounded back to 5,000 though, and I have nearly sold all my mithkabobs.
I'm not gonna defend my actions, I'm not an economist so trying to justify what I'm doing wrong will fall on deaf ears. All I know is prices will level themselves off eventually. If you see someone undercutting to save themselves having to wait 1 or 2 days, what should you do? Wait 1 or 2 days, that will starve the market and drive the price back up. It's all about balance.
And if anyone is wondering, I ended up just selling the remaining 10 stacks of Nebi's directly to the AH rather then further destroy the Fish Mithkabob market.