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That's the dumbest thing I've seen in a while. I can't imagine why someone would overpay that badly.
 
The buyer could be someone from Europe. For example here in Finland the 64Gb version costs 599€ which is about US $685. I don't know if it will work here, but it could.
 
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I hadn't considered that they buyer might be from another country. Wouldn't they still have to pay duties?
 
If they get caught of course. If not, they make a good bargain.
 
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