Alright so here is a bug someone I know experienced today. This player, we will call him Townkiller, sees a player AFK wearing anniversary clothing sitting inside the bank. Townkiller flamestrikes the AFK to death, resulting in his own death since guards are everywhere. Townkiller however had 2 alts sitting nearby, 1 to loot the dead AFK and the other to loot the first alt who would be guardwhacked upon looting the AFK. The plan went a little off. When the townkiller alt lifted the item of clothing off of the dead AFK he was insta guardwhacked. The townkiller alt #2 looks on corpose of alt #1 and there is no item of clothing, nor is it on the ground, nor is it on the corpse of the dead AFK. Once they turn blue the townkiller alt#2 rezzes the townkiller and townkiller alt#1. Townkiller looks all over for the missing item and then gets a message on alt#2 that "dragdrop has timed out" and the missing piece of clothing appears in his pack. That would be the bug. It should drop to the floor when he was killed with it on his cursor, or maybe make it to his corpse? But it certainly shouldn't sit in limbo safe and sound until he rezzes and then drop in his pack. Sorry if the story/names don't make sense, this is of course a second hand story
But this does happen. Die while dragging an item res with it in your pack Not sure if staff knows about this or not, but you were right to report it.