I went to sell it to the merchant along with all my other trash and i got asked if i was sure i want to sell it.

I selected "no" and then it happened again. The merchant didn't think twice about handing me some cash for the purple smiting staff i was selling.
It wasn't a quest item or a customised item, just a random trash drop from spearhead peak.
That's got to be a bug right? Or maybe Anet did it on purpose to stop the bot farmers? Interesting.