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This is a very good question.

Basically, even though your bid was higher -- it was not greater than or equal to the next bid increment.

For example:

1. An item is currently at $20.00.
2. You place a snipe for $20.50.
3. You are informed that your bid is not high enough.
4. This is because the the next bid increment is $1.00, and so your snipe would have to be for $21.00 or greater in order to be placed.

Hope this helps.

Adam

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