There is a lot going on in your question that needs a response.
Short sale approvals are very hard to come by (part of the reason we have so many short sale fails that end up as bank repos) so the listing agent wants to send the offer that they feel will be most likely succeed to the lien holder(s)- because if the short sale isn't accepted then they do work that they do not get paid for.
There is a lot of strategy employed by the listing agents that are successful at closing short sales: how long is the buyer likely to wait (very important since a short sale can take many months), does the buyer have the ability to go up in purchase price, is the buyer asking for any costs (including home warranty, transfer taxes and HOA transfer fees, termite, possible repairs), etc.
Also, list price and accepted (by the seller) offer price has very little to do with what the bank will accept in a short sale (the main reason why there is a short sale disclosure that must be signed by the seller and buyer in CA stating that all terms must be approved by the lien holders). Because of the hassles involved in a short sale, many buyers do not want to bother so some listing agents will under-price a property just to get an offer.
The lien holders do not trust the distressed seller, the potential buyer or their agents, that is why they get their own information on value by getting what is called a 'BPO' (Broker Price Opinion done by an agent that is not affiliated in anyway with the sellers or buyers agent) and these properties are usually sold at or close to their market value.
Assessed value has nothing to do with market value, especially now that the market has declined and the county tax collectors are usually slow to decrease the assessments (since it also decreases what they collect in taxes); but using the scenario that the property is worth $60k more than the offered price, I can wager that the lien holder will not accept the offered price since their costs to foreclose are less than that and they would have no incentive to agree to a short sale. (If they will not make more doing a short sale than proceeding to foreclosure, they will not want to make it 'easy' for the distressed owner and will chose to foreclose).
Re: listing it on the MLS; as long as the seller didn't want it on the MLS, the agent had to comply.
Short sale fraud, or any other real estate related fraud, is taken VERY seriously by the Department of Real Estate & is punishable not only by a loss of a license to practice real estate and major fines but also jail time.
My experience has been that since short sales take so long to get approved the original buyers will usually tire of waiting and find another property so keep an eye out on this one if you really like it and don't find something else in the meantime, odds are that it will become available again either as a short sale or a repo are on your side.
Best of luck,