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What is the point of bidding if you do it at market rate or above? For that you can simply go to an exchange...
If i had the money, i would do the same: Bid at lower price than market, else its pointless.
I think it would be the same concept behing people payin more for coinbae UTXO's: to some actors having "clean" coins is something worth a premium over market rate.
These coins would of course have an "History" but whatever happened before the auction transaction would be forgiven thanks to U.S. Marshal.
Of course fungibility, once again, is major limit in bitcocin protocol, and needs to be fixed as soon as possible (via shnorr/taproot et al. ) or is something will keep distorting markets.
If I were Tim Draper, I would do something else ... I'd work with Wasabi or JoinMarket to create the biggest and longest sequence of consecutive Coin Joins to mix my 40,000 BTC with everyone else's on that day. It will be a day scheduled ahead of time so the most number of participants can join in. Hopefully get a whole bunch of whales and others and even the "traditional" mixers ... I mean, who wouldn't want their coins linked to "clean virgin whitelisted gov" coins ...
I see, 40k BTC, going to get mixed in with an additional 100k from all over the place, using several rounds of Coin Join. Going to be awesome when Chainalysis says everyone's coins are clean because they all came from the auction.
Yes, basically my idea, only better explained!