I thought you needed to leave party to actually ninja loot...and as far as I know you cannot do so while in dungeon...or did I miss something lately?
However, if they pick up first than you do and you get the crappy item, it is not ninja looting, it is just being wise while looting...same happens when you are in a clan party and someone else you don't know...you pick up first trying to give him the other item to be able to share the loot with your clan, not handing it to someone you won't even see again.
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