Update
The character I was playing had all slots in his inventory full. My friend traded me 1 tailored bag and a werewolf pelt. Since I was full, the items stacked on my cursor. However, another item fell to the ground below me after the trade. This item was another tailored bag. I thought nothing of it and just figured he had dropped it for me. Come to find out, he only ever gave me just 1 bag. This process some how duplicated the original bag which in turn poofed when i logged back in.
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