Hi, I am a new user. Sorry if my questions have been covered (though I checked and seen nothing). But here it goes:

How does myibay overcome eBay's automatic bid increase system?

E.g., 6 seconds before bid closes, and the current bid is $5. That bidder has put in a max bid of $10, which is unknown to other bidders. I plan to snipe it with my max bid of $12. If myibay snipes in a bid of $5.50, ebay will automatically increase the competing bid to $6. Will myibay snipe in another bid, and is there still time for it? If not, do I then lose the bid even if my max bid is higher than the competitor's?

Snipe is just a bid placed on last seconds.

If you bid $12, then you will win this item at $11 (assuming that increment is $1).