There are places that sell closeouts, last season fabrics, perfect goods that just are from discontinued lines, but the prices on those goods are just shy of $3 / yard and of course you have to add 30 - 40 cents per yard for shipping costs. If the sellers you've been looking at are charging less than that, then I there must be some other "secret" source that they've found.
IMHO a lot of the closeouts are the leftovers, the ones that didn't sell as well, not the really pretty ones. 'Course beauty is always in the eye of the beholder...