So the proxy bids by the first guy show up only after the second guy puts in his higher bid, and all the incremental bids show even though they are less than the second bid?
In regard to your possible theories, I note the guy has only one other item for auction right now - a Kamui gator tool.
That's right, eBay only uses that portion of your bid that is needed to out bid the next highest bid. That way you can bid $1000 and get something for $35, assuming the next high bid is only $34 (or whatever the bid increment is at that level).
That gator thing is also (possibly) used by the space aliens to ratchet their infrared visors,
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