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Why do phats crash?

Snowver

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So I was interested in buying a partyhat. I consulted a guy on this and he said phats were currently crashing..well how do they crash? They're a limited number item that's rare in a game. It can only go up right? Phats and rates are only investments. So my question is..why do they crash?
 
depending on how many are being sold and how many are being merched and collected.
 
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