Not sure if this fully will address the issue but I do recall a similar issue from a few months ago. I don't think the final bid has to be the full bid increment. I would assume what happens, based on 2 snipers issuing bids at the same time, is that this. When you issue a bid you put your maximum bid in. That may or may not be related to the standard increments. Ebay will execute the two bids and all increments in between until one person is a winner. If the higher bidder has money left over from his previous bids he could win the auction by as little as a penny or two. Bids will be executed at the standard increments until extra money is left over and that will be executed against all bidders who still have a standing proxy bid. The one with the most leftover would, I believe win.