I tried Shep Korvins in-world demo and sure as heck - it works. The inventory disappears just as advertised. This is the same bug that I spent most of my day explaining to my customers and replacing their lost items. I should really invoice LL for my time.
To test this further, I also made an in-world test. I don't mean to duplicate Shep's efforts, but the more we can do to get LL to take immediate action on this the better. Please send your bug reports concerning this issue to LL so that when they finally get into their office on Monday morning, that they understand that this is a huge problem.
Edit: the test is at Jeolla 172, 17, 62
Thanks
Riefa
btw I tried to add this post to Sheps, but the forums denied me access to do that...don't know why.