Panther, Umm, I would not be surprised if there are slight imperfections in the ebay bidding or bid recognition set-up. Once in a while you hear of a strange bid history that no one can seem to figure out--see for example this bizarre incident: https://community.auctionsniper.com/eve/forums/a/tpc/f/385608021/m/8931054581
(On the other hand, like R2, I see no sign of any glitch in the sniping process in your case, as distinct from ebay.)
In any case, I think there's an important error in your description, and it might be part of the explanation here or, uh, it might at least be of some consolation to you (maybe not): You say that "the next highest bid would bid would need to be $25 higher than my high bid which would have been $1326.02". This isn't so.
The reason your statement is incorrect is that, as soon as your snipe was placed, the revealed bid was NOT your max bid of $1,301.02, but only $1,275.00. Thus, in order for the winning bidder to get a bid in, I believe he/she only needed to bid $1,300.00 (i.e. $25 over the SHOWN bid of $1,275.00), he/she did NOT have to bid $1,326.02 or $1,325.00.....
And in order for him/her to beat you, he/she only needed to bid $1,301.03.
In other words, so long as he/she (hell, just say he) could bid some amount over $1,300.00 and over your max of $1,301.02, then the winning price would be precisely his maximum bid, up to a limit of $1,326.02 (because that is then the bid increment over your max bid); ebay would have pushed his final price, in excess of $1,300, up to the lower of (x) his actual maximum or (y) the bid increment level of $1,326.02 (that is, this time, the bid increment over your max bid, not the previous shown bid).
In other words, the min bid increment means that the next bidder needed to bid a minimum of that increment over the SHOWN bid; the SHOWN bid in your case, the instant you bid (and a split second before the winning bidder bid), was only $1275, NOT $1300 or $1301.02. The min bid increment concept also means that, once a final bid comes in that satisfies the min bid increment over the previous SHOWN bid, AND tops the runner-up MAX bid, then the winning bid will be either the final bidder's max bid, or--if less--the min bid increment over that runner-up max bid.
I could probably point you to some sample bidding histories, or make some up, that could illustrate this, if it's not quite clear. But your bid history there would be a perfect illustration of this normal happening, IF the winning bidder's maximum bid was EXACTLY $1,305.00. It's probably confusing when someone tries to explain it clumsily like I have, but after experiencing it a few times the logic becomes pretty straightforward.
And, by the way, I must confess it is a little surprising that ebay support disclosed the high bidder's max bid, because on the face of things the winning maximum bid could legitimately have been precisely the $1,305.00. I wouldn't have thought ebay would disclose max bids so readily......
If I've misunderstood anything, please correct me, anyone.