I'm sorry you lost on the house that you liked so much you are still hurting.
When making an offer, the price is not the onlly factor looked at. Sellers are not obligated to accept the highest price - they can choose whatever offer they like, based on what's important to them.
Cash is always preferred to the financed offer (unless the cash offer is so low it won't get approved).
It's much safer for the seller to choose a cash deal - in terms of its chances to close.
The quickness of closing is important.
How much money is put in escrow is important as well (the more the better).
The "no inspection" is better than "with inspection".
Doing inspection upfront, before the offer is accepted, is done also (so the buyer does not refuse to buy after the short sale is approved). If something happened to the property while it was selling - the buyer, whose offer was accepted could renegotiate the price (like roof leaked, AC broker etc).
If the bank required some money paid to the city (city liens) as a separate amount (or for real estate taxes) - the sold price would appear to be lower (because the buyer would need to pay both - the purchase price and the lien/tax money to whomever they were due)...
I could list more reasons, which does not change the current situation - because you really don't know what happened with the offers, and without knowing what happen, it's better to move on and find an even better house.
Wishing you best of luck,
CDPE - Certified Distressed Property Expert
Beachfront Realty, Inc.