I am not trying to claim this as fact or anything, but there is a rumor around ( and someone also included it in a faq ) that the original VP1 discs are ULTRA senstivie to scratches, to the point even a minor scratch can render it unplayable, it seems highly odd to me but it is possible, I guess I just don't see how a ps1 disc which is pressed like any other would have a unique problem like this.
This is taken from gamefaqs psp version ( but has everything to do with the topic at hand ) from Captain K's walkthrough:
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2) Frequently Asked Questions
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Q: Why is this game so expensive?
A: Supply and demand. Only 73,000 copies were sold in North America. In
addition, the game is extremely sensitive to scratches. The smallest scratch
can make it unplayable, so not all of those copies work. Combine that with
excellent word of mouth that this is a must-play game, and the game is
suddenly impossible to find for less than $100.