"How many times have you witnessed when two or more bidders wait until that last moment and submit very high over-the-top bids and one of them will usually get caught with their pants down and pay more than they had actually anticipated."

Key word is "anticipated".
I've done it to myself when I was not around to submit a snipe bid at the very end ... and I've had others tell me that they didn't think a particular lot would go as high as their highest over bid.