Not sure what you are talking about here. If you go to Blacksmith -> Merge, the chips are sorted by rank. You can sort your inventory with Sort All. If you don't, they will appear in the order you acquired them, of course.
If you needed the lvl4 Obsidian chips, why not embed them as you acquire them? Then you wouldn't have 5 chips lying around that you would merge by accident.
Also, you must be merging chips in a way that I don't know about or something, because I've never had an issue with merging chips by accident or have any issue with how they are presented.



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