Just curious, how could you sell hundreds of purified waters to traders? I think at minimum that would be 600 caps for 100 water, and I've never met a trader who had that many caps unless I'd bought a lot from him...
Are these traders that work at your stores? because these settlers will sell things they pick up to meet their needs. They still need water, food, amo, etc to meet their needs.
I noticed before I had stores, I gave NPCs weapons, ammo, etc. And when I posted them at my stores, they decided to sell what I gave them. I gave one guy a shotgun, and he decided to sell it and I noticed he replaced it with a pipe rifle in his inventory. I gave my armorer a clean blue suit (because I like my traders to look nice) he decided to use a cage armor that was stocked in his store.
If these are settlers that you turned into traders for your stores, they will pick what meets their needs first and then sell the rest. which means they may steal your stuff and sell it back to you.
@neildarkstar if you use cap collector and invest 500 caps in their store, and they are the level 3 or level 4 trader, they have more caps in their inventory.