I have had several customers over the past month contact me and say that Etsy is telling them that an item is sold out and not available when they purchase it. The items ARE in the shop and the customers have purchased them but then getting very confusing information from Etsy. It sounds like they may be asking customers if there is something else they would like to purchase since that item is sold out which is NOT TRUE.
Somebody at Etsy is vying for the Three-Armed-Sweater award
@ScrubHeads: There are quite a few threads in this forum on your exact issue - if you read through them you will see that there appears to be no resolution yet.