Turns out this whole thing was a pricing mistake (via Zappos' official blog):
Well, this morning, we made a big mistake in our pricing engine that capped everything on the site at $49.95. The mistake started at midnight and went until around 6:00am pst.and
While we’re sure this was a great deal for customers, it was inadvertent, and we took a big loss (over $1.6 million - ouch) selling so many items so far under cost.Their loss is customers' gain. I didn't get in the watch deal, but managed to get 2 pairs of shoes before they were gone (yes, I am a heavy FollowSales.com user myself and can't help to buy stuff when prices are really good).
At the same time, we salute Zappos/6pm.com for their courage to honor the pricing mistake, which not many etailers are willing to do. They are the best.