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Kasi has hated Merli for a long time because of the backstory's racial implications. I think they're right when they say that people noticed it and thought it was a little off-putting, but I don't think it was quite as big a factor as they tend to say.

Kasi is a pretty exaggerated and negative person in general though, who often insults almost all the Vocaloids in one way or another, so it could also be partially that,,

Ah so you saw that thread too

I also read somewhere that Merli actually sold well enough to make a profit and just didn't get used...but couldn't find a source.

Still wanna do a song that plays Lapis as the "helpful mentor" to a group of heroes to combat the "evil" Merli

but it turns out Lapis was actually evil and Merli was trying to stop them from getting something that would make her super powerful

Aha yeah, I did!

I would believe that tbh. It seems like V3 was a strange era where banks tended to do alright in sales but just never really gained a foothold. Be it lack of unique qualities or lack of proper marketing, who knows. In fact, in a group chat earlier today we were discussing some things, and Merli's situation came up. A friend pointed out that she was announced alongside Lapis, but then came out years after her. Perhaps without proper hyping, it was a 'too little too late' situation?

That would be awesome!! If you ever do, please let us know!!