The best way to avoid this is to bid only once and bid your maximum.
You don't really do better by 'nibble bidding' and the proxy bidding system protects you by keeping your maximum bid private.
What happens is:
The asking price/opening bid was $10.
You think the item would be a deal at $100.
Calculating in the $10 postage, you place a bid of $90
The auction opens to you at... $10... your maximum is not disclosed.
I come along and think it is worth $75 . I bid $15 thinking to get a bargain.
The auction is still with you at $16
I get annoyed and bid $50. The auction is still with you at $51 .
I leave .
Fred comes along at the last second and bids $52, then $55, then $65. The auction is still yours at $66.
Fred in the last second puts in a bid of $85!
And you win at $86.
Bid once, bid your maximum.
