No that's the point, two bidders both thinking 'I'll put a massive bid on this to win it', so when the bids come in they actually jumped the 3rd highest bid by nearly $1000 and left each other potentially paying 7x the actual value of the record. This works if only one person does it but the minute two people do it you get this.
No wonder the final price of some records on ebay seem crazy, it's just that this one is soooo obvious