Shill bidding is against Ebay's Terms of Service 
and the seller is liable for breaking that 
contract. 

How much buyers should pay is irrelevant. An auto 
dealership advertising a car for $10,000 under 
list better not have it for $5,000 under list. 
It's fraud if they don't, even if $5k under list 
is considered a good deal.  

Fraud is stealing, and stealing is a serious 
crime. If this were a large amount of money, the 
seller would be hauled into court for this. Does 
Michael Milken ring a bell?