He is referring to an auction won when the under-bidder is a 'shill' ie bidding on behalf of the seller, which is illegal. Not the same as a regular bid which happens to disappoint you by pushing your bid to the maximum.

It happens. Most of the time its just a few $$. Sometimes, like one recent occurrence, its a lot more. Mike & David Sarles could testify to that. If proved, ebay WILL take action. Seems like a few peoples ebay id's got suspended recently

Overall, its probably less than 1% that spoil things (including 'all shapes and forms')
Ive conducted over 7000 ebay transactions and had 'problems' of some sort with maybe 20. Two of those involved club members. They are no longer club members