Could a mail server be blocking a domain?

Weird question here. Could a mail server be blocking a domain?

I ask because i am in the process of migrating to a new server and i am testing out a few email accounts.

the domain x.com is hosted on server 1
the domain y.com is hosted on server 2
the domain z.com is hosted on server 2
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If i email from x.com to y.com, the server replies with

550 sorry, no mailbox here by that name. (#5.7.17)

However, if i send from x.com to x.com also x.com to z.com they send fine.

y.com and z.com are on the server, so i don't see an issue with an IP block or anything like that.

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Generally this error happens when mail was hosted on the server at some point, but has since been moved to an external mail server. Qmail will still try to deliver the message locally and fail with this error: This_address_no_longer_accepts_mail

To correct this check the following two files for the domain in question: /var/qmail/control/rcpthosts /var/qmail/control/virtualdomains

Remove the line with this domain from both files then restart Qmail: /etc/init.d/qmail restart

From http://toastergremlin.com/?p=181