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> I gave an honest floor salary to a company prior to interviewing.

Never reveal what your honest floor is. That's just for you, so you know what is an acceptable negotiation range. Tell them what your expectation is, instead.

It can be safe to assume the floor is current salary plus whatever it would take for me to leave plus a little bit extra. I wouldn’t offer a floor lower.

So I can see making an offer below or near floor. 20 percent is awfully low, but I would have fun and make a counter. If they don’t move much you then it’s clearly time to move on. Really depends on what else is on the table.

I'm a little sympathetic to the hiring company. Unless you really know the other negotiating party, it can be hard to guess when they're posturing.

(OTOH, maybe it's a mistake to low-ball a candidate by such a large percentage, regardless. It sounds like a recipe for a discontent employee.)