"Automatically increase the final bid amount to the item's Minimum Bid, if the difference between your max bid and the price at the time of bidding is less than one bid increment"
I thought this is a cool feature. My understanding of this at first is that it raises your maximum bid by the minimum bid increment based on the current price of the item. So for example if the minimum bid increment is $1 and the current price of the item is $50.50 then your maximum bid of $51.00 will be automatically adjusted to $51.50 to comply with the minimum bid increment. I would think this will still happen if the current price is also $51.00 but your maximum bid will be raised to $52 instead. If the current price is $51.50 your max bid will be raised to $52.50 but when the current price is $52.00 then Ace Sniper aborts the bid because the difference of my max bid and the current price is equal to (NOT less than) one bid increment.
Then I thought maybe the feature is doing something else. It would actually re-bid by 1 bid increment say for example the current price is $50.00 (an automatic eBay proxy bid) submitted by a rival bidder. I have a $51.00 max bid. When Ace Sniper submits the bid, I get outbid by my rival bidder with a $51.50 bid which is actually his maximum bid. So Ace Sniper then re-bids by 1 bid increment because the difference between my max bid of $51.00 and the new current high price of $51.50 is only .50 cents (still less than 1 bid increment of $1) and raises my max bid to $52.50
So which one is correct or are they both incorrect? Can you cite me an example? Thank you.