Someone made an offer on the knights. If it was anything more than $50-75 he should have jumped all over it. I just wish I knew what the offer made was. Also, about the legally blind guy, I'd imagine the last Karl Franz he sold was actually decent looking. Then he saw it was easy money, quickly painted a new one, and was hoping to get the same results.
Also about the knights, the same guy is selling an Empire army for $500 with a decent number of models which are much better painted than the knights. It's still no where near worth $500 though.
My best ebay deal was, for $47 shipped: 3 demigryphs, cannon/crew, 10 handgunners, 28 halberdiers, mini rulebook, warrior priest, box of pistoliers, 10x knights, general. All of which are newest possible models, unpainted but mostly assembled. Some of it was broken but was very easy to fix.