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I need a little clarification

I am a newbie. I was bidding on an item that was starting off at $2.99. There was one bid at $2.99. I put my bid in at $5.50 max on AS. AS put my bid in so I was the 2nd bid, but it was put in at $5.50. Why would AS bid up to my max if I was the only other person bidding on an item? I won the item but did I need to pay the max?
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