The silly seller could not see your maximum bid, only the high bid that was showing.
He paid eBay for the listing and for cancelling the listing.
He lost any bidders who were watching the auction with the idea of bidding late.
He lost any bidders with electronic Snipes set to execute in the last few seconds.
There are good reasons to cancel an auction (there is a US seller called 'the dog ate my tablecloth" ) but low bids are not usually one of them.