if the fees were 0% then it would work \o/
Valve don't care if you try to fuck the market, they care only for the fees.
This will work but with budget more than 1000$, and not 1 item (same price range) , with many active transactions.
And for this to work you will need to have huge amount of this item bought on normal price to resell it later for the "big" money when you manage to "crash" the market.
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if the fees were 0% then it would work \o/
So i will translate your tutorial :
1. Give fees to steam
2. Give bigger fees to steam
3. Give bigger fees to steam
4. By giving fees you went from 500$ -> 0$
5. Profit
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I'm sure your method will work with the other 10,000 other skins that are available for cheap.
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No, what he just did is called Merching.
And it happends all the time, he just told you how they do it. This happends alot, except there are "Merch" groups who do it in bundles. Better effect.
And really, valve can't do anything because its a market. The community controls the prices.