fyi, shill bidding is a felony in the United states, so there again, whether or not it was a real scam is subject to conjecture/opinion.
sources: My uncle runs an auction house in Little Rock, Arkansas.
It's also a felony to resist the government's violent thugs, and the US is fine with bombing innocent people, so I don't put much stock in the US's view on ethics.
But is there a reason that shilling and dupe accounts are not prohibited by the TOS? Is that an ideological choice?
It seems to me that you either promote fair dealing or you don't, and while I agree that auction shilling isn't anywhere near pirate level, felonious behavior, it certainly isn't fair dealing. You can't get a little bit pregnant.