Why does ebay say "you have been outbid by someone's highest bid" when that's obviously not true?

 
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It could just be a glitch, or you may have been outbid initially by a person who subsequently retracted his/her bid, thus reinstating you as the highest bidder.  I had the same thing happen to me several years ago on the site, although it's never happened before or since, and I ended up as the winning bidder for the item.