That's a smart move by a user who understands how the Grape TBR system works, maximizing their advantage on a domain they knew would likely sell high. It's all explained
here , along with some examples. If he/she wins the auction say at 11,000 the user's final cost will be $6000 (11000-5000 )
Example 2: You place a pre-order at $300, making you the highest bidder in Stage 1. Stage 2 auction starts at $320. Since no one else participates in Stage 2, you win. You receive a $150 credit (higher of 300 x 0.50 and 300 x 0.20). Your final cost: $150 (300 minus 150)
Example 3: You place a pre-order at $1000. Stage 2 auction starts at $1050 and you win the stage 2 auction at $1500 by competing with other participants. You receive a $500 credit (higher of 1000 x 0.50 and 1500 x 0.20). Your final cost: $1000 (1500 minus 500)