That should be avoided AT ALL COSTS, otherwise the auctions become a joke. Bidders have to honor their bids, and auctioneers have to honor the winners (I've seen a couple of auctions where the winner did not get the goods because the OP finally sold the goods by PM after the auction was over).
Im not sure why friedcat took out the rule for now but its a risk for sure.
The last thing you said sounds horrible. Was this person moved to scam accusations at least?
that is really unfair way to conduct auction, people who did not posted one single bid during auction jumped in on last minute and out bidded others, just because they were unaware of what is going on. Now, some of them offering their positions for sale.
Please consider shipping my 10 blades I'll pay 510 btc.
Thats sniping. And i think that should be forbidden. In fact i thought that will be the fact with this auction because somewhere i have read that the last bid extends the auction for 5 minutes. That would help to prevent sniping because other users can react on it after someone tried to snipe.
Maybe next time. Its no good for future auctions when parttakers in an auction have a bad experience.