TL;DR Overdamage DOES exist, but not in the way a lot of people think it does.
Essentially, if you overdamage you will still get soulbound loot, but the tier of the soulbound loot will most likely be of lower quality (pbag or cyan).
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I’ve personally always thought that overdamage is a real thing, but it seems there a lot of people who think it isn’t. Because of this, I decided to take it upon myself and do some tests.
I did 100 crawling depths with 6 other people who were on non-maxed characters whilst I was playing on my 8/8 archer. In all 100 of them, the 6 other people just played as they normally would and attacked the boss until it died.
In 50 of those cdepths I continuously hit the boss until it died.
Results: 40 cyan/pbags, 10 blue bags.
In the other 50 cdepths, I only hit the boss 3 or 4 times with my doom bow, and then backed off and let the other 6 finish off the boss.
Results: 43 blue bags, 1 white bag, 6 cyans, and 0 pbags.
I forgot to mention that the 6 other people in the dungeons with me, who did considerably less damage than I did in my overdamage runs, consistently got blue bags and only got pbags/cyans >20% of the runs.
This proves to me that overdamage is in-fact a thing, but it doesn’t work how a lot of players think it does. You’ll still get soulbound, but the type of soulbound you get will be of a lower tier level (cyan or pbag instead of blue, st, or white).
I can’t be bothered to do the maths, but the chances of 80% of my overdamage runs being cyans/pbags and then over 80% of my non-overdamage runs being blue bags is astronomically low and can’t possibly be a coincidence or chalked up as just being ‘rng’.
My thinking is that this system was put in place to stop people from bringing heaps of alt accounts into dungeons with their main account to up the drop chances on their main account.
At this point, I’m 100% convinced it is a real thing (and have always thought that), and anyone that thinks otherwise I encourage to do testing of their own. I think you’ll quickly find that it is in fact a real thing.
If you think it isn’t a real thing, please explain why. I guarantee I have far more evidence pointing towards it being a real thing than you have evidence of it not being a real thing.