I am not sure how you got him bidding .01 to imply the price being .13. It looks like he is offering .01 for it while your min bid appears to be .12, it appears that his bid is invalid however that would be up to the two of you to decide
It says his starting bid is .005 em I wrong???
Since he listed the price as .12 and has a separate buy it now of .15, I believe the "min bid" of .005 was intended to be the minimum bidding increment, not the starting price (which is .12). The OP is worded pretty poorly, it would be unreasonable for anyone to think that you meant to bid .13.
