It may have been a buyback. If it wan't, then clearly the seller knew he had "nothing" and was willing to cut his loses on this horse and let him go for a pittance. There's an old saying in the sales world: Better to regret selling than to regret not selling.
There is a TON of veterinary work done on these horses and the horses radiographs etc are available on file to buyers. Today's buyers are looking for a "perfect" horse in terms of vet records. It's possible that the FuPeg/TCL baby had weak films or didn't scope well. If he was selling in the first 2 books he couldn't have been too bad to look at. Maybe he squeaked into the premier part of the sale on breeding.
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RIP Monroe.
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