Exactly.
So let's we have fraudseller_1 that sell something like iPhone.
Here comes honestbuyer_1 that bid for this item with $50.
Seller sees offer, but want to rise it.
Since seller can't use his own IP he is using some remote desktop to login somewhere else as fraudbuyer_1 (different account!) and bid $100. Then he wait honestbuyer_1 to bid again.
If this happens then two - fraudbuyer_1 and honestbuyer_1 can "race" (note the quotes!) for this item.
Of course this is simplified scenario because can be involved pack of fraud buyers to fool buyers.
I know some person IRL that was involved 10 years ago in such activities. So his friend sells vacation homes and buyers from UK bidding for them. But if seller doesn't like bids he call to that person to make bid from his own account. And of course to rise price with least $1000.
But... this can't be track using eBay since it's via phone call and no remote sessions. Today sellers using virtual desktops (RDP, VNC, TeamViewer or other) to do this.