If that is true, it is a serious contender for biggest Inception in any game.
MOUNTAINCEPTION!!! On a more serious note though I tried this with Taloons and it didn't seem to work with those.

defiantly works with alpine

Talons aren't big enough, you only gain the extra inventory space with a hunters or mountain backpack. Might I add, hunters pants in hunters pants in hunters pants is also an issue.

I think this holds true with most containers of the same size. Works with protective cases as well.

Kinda off topic but It would actually be good to put bags on bag. IE tie a plastic bag to the side.

Stacking storage is possible for nearly any item that allows storage. Assault vests cannot be stacked more then storing the items inside the vest then storing the vest inside a pack. The vest is a 3x2 inside a pack. Cargo pants and other pants that store 2x3 can be stacked unlimited, but take some effort to do so. You must first equip a pair to store a pair inside via double-click and having the pants be the first open 2x2 spot. Then this process can be repeated until the server crashes I guess. This is extreme op to store ammo because reloading is not affected by stacking. Also hotkey items seem to be unaffected by stacking and can also be still be accessed.

Yeah weight mechanic would help with this but you should be able to stack clothes and backpacks inside each other... with the contents of the item taking their full amount of space inside the backpack PLUS a few more spaces to account for the item itself. For example:

Mtn Backpack with 4 tins of beans and 1 canteen (6 squares) to stack inside another pack would take up say 12 squares; 6 for it's contents and another 6 for the pack itself. Hunter pack would take up 5 and small pack maybe 3 or 4.

Maybe the best way to address this is to have a weight value for each item. This weight value reduces your speed. So you're welcome to cart use inventories around, but you'll just do so at snail pace.

This mechanic could also aid new spawns get away from bandits.

Would say with 90% certainty I am also Experiencing this issue. I personally have a large amount of the object on my quick bar heavily buried in the packs. and it was only once doing so that I feel i started to experience the problem. I am wondering if this could some how be related, or possibly coincidence

Dog, I agree on pants and containers, but backpacks can be rolled up and should not take a whole backpack to store when it's empty.

The best solution would be that clothing and backpack will take more space if they have anything in them, when empty they will take not much space and if u pack them they will take more, therefore no one will be able to do this anymore as it will be unbeneficial. :D

Yes chaps that was the implication of my suggestion: soft containers (clothing, backpacks etc) can be rolled up to take much less space then their storage allowance, but anything inside them takes up it's full allowance, so a shirt with a can of beans in it takes up +1 space more then an empty shirt. This so as to prevent the nested item exploit.

Probably much easier to code is that containers are auto-emptied when packed into another container...

It's a pretty serious issue, and people shouldn't exploit it. I've experienced the sync/bandwidth issues and a couple of my friends who I was playing with noticed it also, and almost died because we couldn't move and zombies were nearby. I'm fairly certain it was due to the fact that I had a full pair of cargo pants inside a full hunting backpack inside a mountain backpack. I experienced the issue again when I found another hunting backpack, loaded it full, and put it in my mountain pack. All seemed well, until I tried to get something out of the hunting pack, and I couldn't perform any action for 20 minutes. Eventually gave up and logged out.

Some people might think this is cool, but it eats up bandwidth from the server and causes major issues.

This issue was processed by our team and is being looked into. We thank you for your feedback.

Please keep the issue monitored to see when it is fixed.

The easiest fix for this would probably be to only allow a container to be added to another if it is empty.

If implemented this way you could then make backpacks take up less space as well which would allow you to pick up a spare for a friend.

Issue was looked into and fixed. Now you should be able to put only one empty backpack into another backpack.

Thank you for reporting this issue to us. We appreciate it, keep up the good work and help community and developers to build better game for all.