David Y.

This is not an auction at all. They, according to their own rules, can manipulate anything that even approaches the appearance of a legitimate auction model. Read their following words," Until the seller's reserve price is met, Auction.com may counter bid on behalf of the seller. Counter bidding gives buyers and sellers more flexibility to find a mutually agreeable price. Counter bids do not occur after the seller's reserve price is met."
Until their "reserve price" is met, they can bid up others bidding on the site - even if there is just one other bidder. On top of that holding deposits?
Bridgeport, CT bid just took place on house that was worth 100k and it went for $151,911. For an investor there is no upside. For a homeowner it needs $50k put into it, thus no upside. Go buy a house that has already been done.