It was extremely brutal since there was literally no protection of your gear. Not only could you lose all the items on you if you got mugged or killed. If a scammer, thief or murderer got ahold of your house key they could clean out your whole house meaning you would lose everything.
I hope to experience the same rush in another game in the future.
(before you could target the repair skill to items in the trade menu)
The really cool thing about that game was that any time a player commits a "crime" like trespassing, theft, assault, etc, a "scent" is left behind at the scene of the crime which could be collected and would then allow you to track down and possibly exact revenge upon the perpetrator. I've never seen another game with a system quite like that one. The game had plenty of other flaws, but it still managed to lead to some pretty unique situations, and actually made you think twice before going on a murder/theft spree.
The game itself has pretty much been rewritten from scratch since the last time I played so I don't know what the game is like in its current state, but I would still recommend giving it a look.
I knew a fellow who would offer to offer to buy expensive runes in Shadowbane for, say, 250k gold - and then when the time came for the trade he'd slice a 0 off the amount of gold he put in the trade window. Perhaps this sort of scam is helped by small font and large currency inflation.