I just went through an Uber Chest and put 3 items directly to the Blacksmith, keeping 3 others. I immediately went to the Blacksmith to see how many pearls I was going to get and there were no items being melted down. The 3 items I sent are not in my inventory. I just lost them and the gold I spent to melt them down with. I have noticed other bugs with the Blacksmith over the past couple of weeks but this is by far the worst. Yesterday I had a 50 pearl item being melted when I added a 2 pearl item to the list. it changed the 50 item to the 2 item, but kept the original time going. Not wanting to loose the 50 pearls. I cancelled the melt.
Thank you for looking into this.