True of nearly any auction. Actual buyers stop bidding when they think the price has exceeded the value to them. If the music stops with a fake bidder holding the bag, the auction will have to be re-held, now with increased scepticism by real bidders, likely securing a lower final price.
"Auctioning again because the previous buyer didn't pay after winning" - ebay, somebody justifying why they've reopened the auction.
taking this a bit further, the original authors could probably employ this as a strategy: Since it's an anonymous auction, the original author could win the auction and then refuse to pay repeatedly until all the real potential buyers have given up.
Apparently, you have to deposit BTC 0.1 (~= $4,700) to be allowed to bid. Presumably, you'd be losing this deposit upon each iteration if you refused to pay.