The following was what happened, but no items were lost in the trade. 1) Character A places Equip 1 and Equip 2 in trade window (note that Equip inventory has 2 slots available after this). 2) Character B places Equip 1 and Equip 2 in trade window, which then also left 2 slots available. 3) Trade. 4) Pop-up indicating trade has been unsuccessful, items does not show back into respective character's Equip inventory, as though the items in the trade window were destroyed when the trade occurred. 5) Tried to pickup some equips dropped by mobs on Character A (note that at this point, the Equip inventory shows 2 available slot), but prompted with inventory full error. 6) Tried to change channel, and the respective items appear back into respective character's inventory (because the trade failed). Not sure if this happened because of server lag, but I wasn't experiencing any lag prior to the trade.