"Then you should only bid $1 Aaron (not $100) ... and don't regret it. Maybe you'll get lucky!"

But when the item in question is possibly unique (as was the case with one of the recent items in question in this thread) those basic rules go out of the window. In such a case its not so much what someone is willing to pay as what they can afford to pay. Not necessarily the same thing.
You may well pay far more than you or anyone else thought it was worth (as a result of the shill) but the sum of $$ involved is only pocket change. However, you reserve the right to be extremely pi$$ed with the shill bidder.

Mike will correct me if Im wrong as I didnt follow the item to its conclusion but at one point it appeared the (probable) shill had pushed the chip from $3500 to $13000.