It musta been another sniper and I dont think making it closer to the end of auction would help then since they were probably using something like AuctionSniper themselves.
Sounds like they did just like you, entered their max and put it in at the last second and hoped for the best. It's bound to happen sometime, but I think overall you'll win more auctions for less than your max most of the time.
You can probably safely lower your snipe time to 3-4 seconds without much problem. We place nearly every snipe on time even the 1 second snipes. But as Steve mentioned the deciding factor really is your max bid, not the timing of it in the last few seconds.
I'm certain you'll start winning more with out hitting your max.
Thank you