Maybe I'm not explaining the situation clearly. The answer to your question is yes. Please allow me to try and simplify what is going on.
Sellout enabled> manually through player input interact with npc> sellout automatically sells some of the item, example; 5 out of 99 silver > sellout stops selling the rest of the silver> sellout blacklists silver.
Sellout enabled> manually through player input interact with npc> sellout automatically sells some of the item, example; 5 out of 99 silver > sellout stops selling the rest of the silver> sellout blacklists silver.