Update on my lost inventory: Blizz were able to find and restore my between-alts mailed items. They were not able to restore the lost auctions - between 2-5k sold/expired items including mounts and very rare mogs. I'm counting my blessings and moving on.
I don't know the answer. Mail is an awkward way to store things too. If I was rewriting, I'd be tempted to destroy the mailing system, treble everyone's bank sizes and make AH connected to bank store.
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Or just have the AH store the items and gold until you retrieve them.
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That can and will backfire. For the small price of 5$ you can create a dummy account and spam mails like there is no tomorrow, that need to be stored infinitely. Sooner or later the storage space will run out, or possibly make mail unusable. Sounds like something 4chan will do.
End of conversation
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