Your guess was correct, it was in fact a short sale. (It actually just went under contract, but it is accepting back-up offers, probably with a preference for cash buyers). I'm not sure the price is actually too far off market. It was previously listed for about $150K from about July 2010 to September 2012. Clearly, they needed an offer to take to the bank, and they just got one.
The community also requires at least a 6 month lease, making it less attractive to those who are looking for short term rentals.
Let me know if there's any other information you need!