They might have been exploiting bid retraction loophole in ebay:
Goes something like this:
1. Item is listed for $1
2. Bidder1 places maximum bid for $2
3. Bidder2 places [insane] bid of $300,000 [or whatever]
4. Nobody ELSE bids on auction because they don't want to pay $300K
5. At last moment, Bidder2 cancels bid
6. Item is sold to Bidder1 for $2.
Now, this one seems a little better because they have several accounts bidding, so you can't tell the auction is being scammed. And nobody can tell which is a legitimate bidder. All fake bids are retracted and allows the minimum bid to win.
In this case, the bidders AND the auction are all fraudulent. Which, I think, means that everybody gives each other great feedback and go look for real victims.
Ebay encourages this behavior by hiding the identities of the bidders. Ebay is turning into a friggin hive of scum and villainy.