Yes, it does happen ("bid sheltering") and
the seller can chose not to sell
the item if it does in fact happen. So no loss. Also no bad feedback
either because the item gets removed as a cancelled sale after the fact. I
have seen this happen.
The scammer still gets away with what he intended - lots of potential
competition are scared away. If the sale does not go thru - wait 'til next
time!
I think the actual term is "bid shielding".
Yes, it is.
William Donzelli
aw288(a)osfn.org