That guy's writing is so poor I can't really understand what he's saying.
I've crafted with a full inventory before and nothing gets 'automatically tossed'. It just goes into loot. And afaik, if your inv is full and then its your loot that gets tossed. It doesn't replace stuff in your inventory. Again his description was so vague, its hard to figure out what he meant by his post....
Wada: "There may be some areas of testing that were lacking or too rigid."