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Reply to "bidding on item where "reserve not yet met""

The bid was at $125, and your $290 bid raised it to $175 but wasn't enough to meet the reserve. That means that it was enough to top the proxy bid that went before it, which had a max of $170, and the bid increment of $5 gives you the $175. But your $290 bid didn't meet the reserve either, so the bid stopped at $175 and you had a proxy of up to $290 if anybody else cared to bid. But that's where the auction ended.
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