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#1
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They have been discussed many times on the PSA boards. It has been speculated they buy lower graded cards (fives/sixes), crack them out and sell them raw as nrmt. They typically guarantee the card is unaltered, but most will not make a seven holder.
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#2
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I have bought from them a number of times and never had an issue. The card was in the shape and condition anticipated by the scans.
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