No mercy from ArenaNet this week as they smite Exploiters with the Banhammer. The basic gist of the exploit was as thus, a valuable item was made from one of item ‘X’, but could be salvaged to obtain 2 item ‘X’, with this method you could obtain the material exponentially, an infinite number of times.
The exploit has been fixed, and ArenaNet is accepting no excuses from the offenders with ArenaNet Support Liason Gaile Gray posting this on the forums:
Any time you take one thing and can make two, and then four, and then sixteen… ya gotta know that’s just wrong. (I won’t quibble on the odds, but overall, that form of doubling was not outside the realm of possibility.) And to perform that action hundreds and hundreds of times? That’s called “exploitation,” and that’s against the User Agreement, the Rules of Conduct, and all that is holy.
Source: GW Forums