It is because it makes the game extremely unfair for non-$300 donors when pvping a $300 donor. When the non-donor dies, he or she loses his or her full inventory+experience. Yet, if the $300 donor dies, he or she loses nothing. It makes non-donors wage substantially greater stakes when compared to their donor opponents.

Apart from that, it says in the rules that this $300 perk does not include deaths while pvping.

Sorry but 300 dollars is a lot of money. I think the perk is justified. If it worries you that much just don't PVP high level donators, or donate yourself. I mean if the person is honorable anyway they will respect the rules and hand over their items in the event of a loss.

No, in the rules it says that this perk is not to be activated upon pvp deaths. So there was no perk to begin with.

If you believe that the perk should include pvp deaths, that is your opinion. However, under the current rules, I believe I am justified in reporting a "glitch".

You are completely justified since it is indeed a glitch. Like I said though, if the person you kill is honorable they will hand over the items anyway. Until it is resolved I would recommend being wary of who you PVP though to avoid any further issues.

Yeah, Italy08 offered to give me his sword after our fight. Good guy.