The bid was not at $700 and somebody entered a bid of $5,700 and the bid automatically went up that much. GL doesn't work like that. Somebody else had to be bidding aginst them for the bid to go that high. In other words, somebody else had to have bid $5,600 (or whatever the next lowest bid increment is).
An auction is free enterprise at it's best. Everybody has a chance to bid whatever they wish. To be courteous and not bid on something to let somebody else have it at a lower price is accually illegal if both parties have knowledge of it. It's called collusion.