Here is a SIMPLE explanation for those still struggling.
Player 1 - serer admin and guy with gear
Player 2 - No gear
Player 1 has the gear and drops it on floor..
Player 2 picks up gear FAST and logs out
Player 1 stays in server and restarts
Player 2 has the gear because he logged out and updated BI servers
Player 1 gets rolled back 30 seconds or so from the server restart - to the point before he gave the gear away