I know with SGC when a card is submitted for crossover in another companies holder and fails to meet the minimum grade declared by the customer, it will be returned as it was sent in.
Many collectors though feel that submitting a card in a holder effects the graders ability to look at the card objectively and crack them out and submit them raw.
I don't know the motives of this particular person, but I know I personally wouldn't risk sending it in raw. Even if it drops one grade it's a five figure loss.
And one other note: If this card was cracked out, isn't it possible it was trimmed even in the slightest before being resubmitted to PSA?
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