Short sale homes are generally priced low, below payoff...
The bank (after MUCH diliberation) approved the sale at $125,000 in this case. Don't confuse short sale with foreclosure, the short sale process is completely different. And a minor PIA for all involved. Banks generally don't budge much on short sales.
Not surprised to hear other contracts fall apart, they can be very difficult to close and usually take months if they do close. Ask your agent to call and see why the other contracts fell apart, lender required repairs kill many foreclosure and short sale contracts and can be very difficult to resolve.
