I recently discovered you can loot everything a merchant sells

Open a trade with anyone
Place everything they sell in the trade
Don't buy anything
Remove everything from the trade window
End the trade
Kill the npc
Loot everything

My guess is the game has two inventories for merchants. body and merchant inventory. Merchant inventory doesn't drop when an npc dies because it is not shared with the body inventory. However by placing the items in the trade window you are somehow removing them from the merchant inventory and placing them in the body inventory. Essentially you are forcing the game to move merchant items into the body's inventory allowing it to be lootable upon death.

Hope that was clear.

I just did a test run, and you can actually do this to every single npc. This bug is particularly potent where you are in a dialog with an npc that you KNOW will be a fight. Just follow the steps above and once the npc is dead you get all their loot.

It isn't a smart thing to kill merchants but you can still trade and buy with everyone else, even bosses who have some interesting things to sell.

Raze is the dev team aware of this or is it fixed already on the internal build?