Punish Harder. Delete items.

[Jamuraan]

Here's an idea: Don't buy their Fungis when they come back. One person with 50 fungis can't wear all of them at once. Buy from people who are known to be non-hackers, reputable and trustworthy. Black-balling these cheaters is just as effective as wiping their accounts.

Items are worthless if they can't sell them or trade them.