For many reasons I've never felt compelled to buy gold or pay for leveling on World of Warcraft. So I had no idea how the process worked. We got a tip from Kyron of Andorhal about a friend whose account was hacked. In addition to having all of his gear and gold stripped from his characters, he had 2 emails in the inbox for cheap items that he'd purchased off the auction house that the hacker had purchased for 500 gold a piece.
They recorded the name of the seller from the auction house and confronted him when he next came online. It turns out that person wasn't a gold seller but a gold buyer. He'd been told to put Coarse Thread on the AH at the 500 gold rate and would receive his gold when the hacker purchased the ridiculously priced item.
I didn't know how gold-buying worked, but this sounds like a way to exchange gold easily. This is something that blizzard could check into pretty easily. While sometimes players make strange prices in order to dupe would-be buyers, something like Coarse Thread would go unnoticed because most players wouldn't look for such items on the auction house.