Yes, a seller can end his auction early, and if he cancels all bids prior he is within his 'legal' eBay rights. Even if his reason is, as with this one, he just changed his mind as long as there are no outstanding bids he is under no legal contact to sell the item.

However.........

eBay 'ethics' are another story! I don't think that this is a good way to build a reputation for a realitively new eBay seller. Many times it's in the last few seconds that the true value of the item is disclosed by all of the 'snip' bidding programs that are being used.

In MY opinion, he should have started the auction at a price he felt comfortable with or put a reserve on the chip. He should have been aware that this action would prove worse to his reputation than selling the chip for $5.00 would be to his wallet.

(and you NEVER have an auction end on a holiday weekend.....big ROOKIE mistake!)

I give this eBay seller the RAT FINK award for his action.