Sounds like you did bid several times in a row. The other bidder bid MORE than you did, and MORE than was showing when you started "nibbling" on his "hidden maximum". Or you did that to a prior bidder. If you want a complete explanation of what happened in chronological order, post the item number.
A few things to know in order to read a Bid History:
Never go by a bid history on a mobile app or the mobile web. They are deliberately incomplete and worse than useless.
Any bid of the high bidder that is higher than the "current bid" (what the price would be if there is no further activity before the auction ends, calculated primarily by the "underbid"--the highest bid of the 2nd highest bidder--generally the underbid plus 1 bid increment) is displayed with the current bid amount instead of the actual bid amount. All other bids show at the actual amount of that bid. Thus there can be multiple bids of the highest bidder at the top showing the same amount.
Bids are sorted by AMOUNT of the bid (the hidden maximum for each bid of the highest bidder showing at the "current bid" amount at the top), not by time received. For some reason people tend to expect them to be from latest to earliest bids, and if they notice the timestamps some take that to mean something is wrong rather than adjusting their expectations of how it works.
The endtime displayed at the top of a bid history of a completed listing is truncated (rounded down) to the lower minute. HH:MM does not mean HH:MM.00.000. To calculate the endtime to the second add the "Duration" of x days to the starting time which is displayed at the bottom of the main bid list on the Starting Price line.
If there have been any cancellations or retractions those are shown in their own section below the main bid history table. Be aware that when a bid is retracted prior to the last 12 hours or cancelled at any time ALL prior bids by that bidder are removed from the main history but information on only the last (which will be the highest) will be given in that section.
The "Show automatic bids" function is a tool that attempts to recreate the "current bid" that may have shown at various times during the auction but it is only that: a tool to recreate (it is not a record of what actually showed at various times); a tool that attempts (it is often wrong, displaying "automatic bids" that never were the displayed "current bid" and not showing what actually showed as the "current bid" at various times such as what showed before a cancellation or retraction--a good thing as showing that could reveal more of the leader's bid than should be shown--or when a Reserve Price is first met--showing what that reserve was, not so good an omission); the timestamp on the "automatic bid" is not the time that that "current bid" was started to be displayed but rather is the time of a bid by the bidder it is attributed to; in any event the notion of "automatic bids" is misleading as it is based on an imperfect analogy used to oversimplify the eBay bidding process (in reality, eBay doesn't "bid on your behalf" but rather calculates what the price would be if there is no further activity before the auction ends, displays that as the "current bid" and hides the full amount of any bid by the highest bidder that exceeds that calculated price by substituting that "current bid" for the full amount of that bid).
