Title.

It deletes that item from your account. You will no longer have that item.

I understand that part, but does the item just... go back to the store or is it floating in the server or? That's the part I don't get, what happens to the item after deleting?

No, that copy of the item doesn't exist anymore after being deleted. As far as I'm aware..

It simply ceases to exist, the data of its existence is also gone, from what I understand

The 'means of production' of Subeta is entirely artificial. The 'natural resource' are staff salaries, your computer's ability to render pixel arrays, and server capacity. Nothing else is real or behaves real. Deleting stuff just deletes it, because you happened to want to do that instead of anything else as part of 'your turn' playing the game.

Imagine buying a RL toaster and then setting it on fire. Where did it go? Toaster heaven probably

The line of code that “is” the item is removed from the code that “is” your account (which itself is also just severalllll lines of code&data retrieval).

I somehow thought deleted items would end up in the Trash Can. Guess I was wrong!