At the end of the auction, you see everyone's maxmimum bid, EXCEPT the winner. In his case, you only see one bid increment above the second place bidder. A bids $10; B bids $7; C bids $5. At the end of the auction, you see B and C's bids, but A is listed as $7.25, because that was the second place bidder's max plus one increment (which is 25 cents for auctions in that price range). You have no idea what A REALLY bid, just what it took for him to win.
What makes it confusing is that eBay lists bids by amount, rather than in the order in which they were received.
We snipe to avoid the scenario Jen mentioned, whereby, a bidder keeps rebidding at higher prices. Our way, the bidder does not keep rebidding, because he is already on top.